In a notable verdict, the Supreme Court has ruled that the refund of stamp duty under the Maharashtra Stamp Act, 1958, cannot be denied on the basis that the application was made before the execution of a cancellation deed. This decision underscores that applications filed within six months from the date of stamp duty payment are valid for refunds, even if the cancellation deed comes later.
In this case, the applicant sought a refund of stamp duty paid for an unexecuted conveyance deed, arguing fraud by the vendor. The key issue was whether the refund application, submitted before the cancellation deed, was valid. The authorities had contended that the application was invalid as it was not filed within the appropriate time frame from the cancellation deed.
The court, however, clarified that according to Section 48 of the Maharashtra Stamp Act, the application for a refund must be submitted within six months from the date of stamp duty payment, not the date of the cancellation deed. Since the applicant’s submission met this requirement, the Supreme Court found the High Court’s earlier ruling, which dismissed the application on technical grounds, to be misplaced.
Justice Prashant Kumar Mishra, authoring the judgment, emphasized that the limitation period’s expiry may bar the remedy but not the right to seek a refund. Citing the precedent from Committee-GFIL v. Libra Buildtech Private Limited & Ors. (2015) 16 SCC 31, the court held that the applicant, having pursued legal remedies in good faith, should not be denied the refund due to procedural technicalities.
The court concluded by allowing the appeal and directing that the applicant be refunded the stamp duty paid for the unexecuted conveyance deed. This decision reinforces the principle that genuine claims should not be obstructed by procedural nuances.
