Canagasooriyam vs. Commercial Leasing and Finance PLC – sllr 2021 volume 2 page 196

In the case between Canagasooriyam (Plaintiff) and Commercial Leasing and Finance PLC (Defendant), the court addressed whether a document marked P2, presented as an indemnity bond in connection with a factoring agreement, was subject to stamp duty under the Stamp Duty Act and the Stamp Duty (Special Provisions) Act. It was held that P2 was not liable for stamp duty, reaffirming the principle that ambiguity in fiscal statutes must be resolved in favor of the taxpayer. This decision relied on the interpretation of relevant statutory provisions and established case law, emphasizing that fiscal obligations must be certain and strictly construed, impacting the treatment of indemnity instruments vis-à-vis stamp duty requirements.

Samayawardhena J. — Analyzed the nature of the document marked a