Case Note & Summary
The Petitioners, Qwik Supply Chain Pvt Ltd and another, filed two Writ Petitions challenging the orders dated 07.03.2015 and 08.02.2018 passed by the Chief Controlling Revenue Authority, Maharashtra, rejecting their applications for refund of stamp duty under Section 47(c)(5) of the Maharashtra Stamp Act, 1958. The Petitioners had entered into agreements for sale of immovable property and paid stamp duty on those agreements. However, the agreements were not registered and were not performed within the stipulated time, resulting in their deemed cancellation by operation of law. The Petitioners applied for refund of the stamp duty paid, but the Authority rejected the applications on the ground that no instrument of cancellation was executed. The High Court, after hearing the parties, held that the expression 'cancelled' in Section 47(c)(5) includes deemed cancellation by operation of law. The Court reasoned that since the agreements were not registered, there was no requirement to execute a separate instrument of cancellation, and the refund could be claimed on the basis of deemed cancellation. The Court also held that the applications were filed within the limitation period of six months from the date of deemed cancellation. Accordingly, the Court allowed both Writ Petitions, set aside the impugned orders, and directed the Authority to refund the stamp duty to the Petitioners within a specified period.
Headnote
A) Stamp Duty - Refund - Deemed Cancellation - Section 47(c)(5) of the Maharashtra Stamp Act, 1958 - The Petitioners sought refund of stamp duty paid on agreements for sale that were not registered and were deemed cancelled by operation of law due to failure to perform within the stipulated time. The Chief Controlling Revenue Authority rejected the applications on the ground that no instrument of cancellation was executed. The High Court held that the expression 'cancelled' in Section 47(c)(5) includes deemed cancellation by operation of law, and the Petitioners are entitled to refund as the agreements were not registered and no instrument of cancellation was required. (Paras 1-10) B) Stamp Duty - Refund - Limitation - Section 47(c)(5) of the Maharashtra Stamp Act, 1958 - The Court held that the period of limitation for filing a refund application under Section 47(c)(5) is six months from the date of cancellation, and in cases of deemed cancellation, the limitation runs from the date of such deemed cancellation. The Petitioners' applications were filed within time. (Paras 5-8)
Issue of Consideration
Whether the Petitioners are entitled to a refund of stamp duty under Section 47(c)(5) of the Maharashtra Stamp Act, 1958, on the ground that the agreements for sale were deemed to have been cancelled by operation of law, even though no separate instrument of cancellation was executed.
Final Decision
Both Writ Petitions are allowed. The impugned orders dated 07.03.2015 and 08.02.2018 are set aside. The Respondent No.1 is directed to refund the stamp duty to the Petitioners within a period of eight weeks from the date of this order.
Law Points
- Interpretation of Section 47(c)(5) of Maharashtra Stamp Act
- 1958
- Deemed cancellation of agreement for sale
- Refund of stamp duty
- Distinction between cancellation of agreement and cancellation of instrument
