Case Note & Summary
The Petitioner, Uma Niwas Co-Operative Housing Society Ltd., a society registered under the Maharashtra Co-operative Societies Act, 1960, filed a writ petition under Article 226 of the Constitution of India challenging orders dated 2 May 2016 and 16 July 2016 passed by Respondent Nos.1 and 2 (Collector of Stamps and Deputy Inspector General of Registration). The orders demanded deficit stamp duty with respect to Flat Nos.218 and 320 in the society, which affected the society's right to obtain deemed conveyance. The society had been granted deemed conveyance on 11 February 2014, but the Registrar required determination of stamp duty on the deemed conveyance deed. The Collector passed an interim order on 28 September 2015 and a final order on 2 May 2016, calculating deficit stamp duty for Flat No.218 at Rs.25,150/- and for Flat No.320 at Rs.1,90,040/-. The society's appeal against the interim order was dismissed by Respondent No.2 on 16 July 2016 on the ground that the issue was not within the scope of Section 32B of the Bombay Stamp Act. The society then approached the High Court. The main issue was whether the demand for deficit stamp duty for Flat No.320 was barred by limitation. The document for Flat No.320 was from 1989 and was covered under an Amnesty Scheme; full stamp duty of Rs.7,060/- was paid in 1995, and a certificate under Section 41 of the Bombay Stamp Act was issued on 2 March 1995, subject to Section 53A. Section 53A allows revision of the Collector's decision under Section 41 within six years from the date of the certificate. The demand was raised in 2015 (interim) and 2016 (final), well beyond the six-year period which expired on 1 March 2001. The court held that the demand was barred by limitation and quashed the orders regarding Flat No.320. The court also noted that the proviso to Article 25(1)(b) relied upon by the respondents was not applicable. The petition was partly allowed, with the demand for Flat No.218 not pressed as the amount was small and already paid.
Headnote
A) Stamp Duty - Limitation - Deficit Stamp Duty Demand - Section 53A of Bombay Stamp Act, 1958 - The court considered whether a demand for deficit stamp duty raised in 2015/2016 was barred by limitation where a certificate under Section 41 had been issued in 1995 subject to Section 53A. Held that Section 53A provides a six-year period from the date of the certificate for revision, and the demand beyond that period is barred (Paras 11-13). B) Stamp Duty - Amnesty Scheme - Certificate under Section 41 - Section 41 and Section 53A of Bombay Stamp Act, 1958 - The court examined the effect of a certificate issued under Section 41 stating full stamp duty paid subject to Section 53A. Held that the certificate is conclusive as to payment but subject to revision within six years under Section 53A (Paras 7-8, 11-13). C) Stamp Duty - Reasonable Period - Demand after 20 years - Bombay Stamp Act, 1958 - The court observed that even if Section 53A were not applicable, raising a demand after 20 years (1995 to 2015) is not a reasonable period under the scheme of the Act (Para 16).
Issue of Consideration
Whether the demand for deficit stamp duty raised in 2015/2016 with respect to a 1989 agreement that was the subject of an Amnesty Scheme and for which a certificate under Section 41 was issued in 1995 is barred by limitation under Section 53A of the Bombay Stamp Act, 1958.
Final Decision
The petition is partly allowed. The impugned orders dated 28 September 2015 and 2 May 2016, insofar as they relate to demand of deficit stamp duty for Flat No.320, are quashed and set aside. The demand for Flat No.218 is not pressed and is not adjudicated.
Law Points
- Limitation for raising deficit stamp duty demand under Section 53A of Bombay Stamp Act is six years from date of certificate under Section 41
- Amnesty Scheme certificate subject to Section 53A
- Demand beyond six years is barred by limitation
- Reasonable period for raising demand under Stamp Act cannot exceed 20 years.
