Case Note & Summary
The Petitioner, M/s. Satyam Construction, entered into a Development Agreement on 2 June 2011 with Shri Rajiv Ghule and others for development of land at Village-Manjri Budruk, Pune. The agreement was valued at Rs.10,05,45,000/- and the Petitioner paid stamp duty of Rs.20,10,900/- at 2% under Article 25(1-a)(A) of Schedule I of the Maharashtra Stamp Act, 1958. However, the Petitioner could not receive possession of the land, and the parties mutually decided to cancel the transaction. A Deed of Cancellation was executed and registered on 3 August 2011. The Petitioner applied for refund of stamp duty on 22 October 2012 under Section 48 of the Stamp Act. The Collector of Stamps recommended rejection, and the Chief Controlling Revenue Authority (CCRA) rejected the application by order dated 12 August 2014, holding that the case did not fall within the proviso to Section 48(1). The Petitioner challenged this order by way of a writ petition. The Court considered the provisions of Section 47(c)(5) and Section 48 of the Act. Section 47(c)(5) provides for refund of stamp duty when an instrument is cancelled before possession is delivered, and the application is made within two years. The Court held that the Petitioner's case squarely falls under Section 47(c)(5) and not under the proviso to Section 48(1). The CCRA had erroneously applied the wrong provision. The Court allowed the petition, set aside the CCRA's order, and directed the respondents to refund the stamp duty of Rs.20,10,900/- to the Petitioner within eight weeks.
Headnote
A) Stamp Duty - Refund - Cancellation of Instrument - Section 47(c)(5) and Section 48 Maharashtra Stamp Act, 1958 - Petitioner entered into a Development Agreement, paid stamp duty, but transaction was cancelled before possession was delivered - Petitioner applied for refund within two years - CCRA rejected application under Section 48 proviso - Held that the case falls under Section 47(c)(5) and not Section 48 proviso, as the instrument was cancelled before possession and within the prescribed period - Refund allowed (Paras 1-10).
Issue of Consideration
Whether the Petitioner is entitled to refund of stamp duty paid on a Development Agreement that was cancelled before possession was delivered, under Section 47(c)(5) read with Section 48 of the Maharashtra Stamp Act, 1958.
Final Decision
The Court allowed the petition, set aside the order dated 12 August 2014 passed by the Chief Controlling Revenue Authority, and directed the respondents to refund the stamp duty of Rs.20,10,900/- to the Petitioner within eight weeks.
Law Points
- Refund of stamp duty
- Cancellation of instrument
- Section 47(c)(5) Maharashtra Stamp Act
- 1958
- Section 48 Maharashtra Stamp Act
- Development Agreement
- Possession not delivered
