Court Upholds Stamp Duty Adjudication: Petitioners' Appeal Dismissed.


02 May 2024 Taxation and Duty >> Property & Real Estate  

In a recent ruling, the Bombay High Court dismissed a petition challenging the May 6, 2016 order of the Chief Controlling Revenue Authority, which had rejected an appeal regarding stamp duty assessments under the Maharashtra Stamp Act, 1958. The case arose from a dispute concerning a conveyance deed executed for a piece of land that was initially classified as agricultural.

The petitioners had previously entered into an agreement for the sale of agricultural land on November 9, 2006. However, they faced hurdles in registering the agreement, leading to it being impounded by the authorities. Subsequently, on January 13, 2012, the petitioners paid a penalty and deficit stamp duty amounting to Rs. 61,560 related to the agreement.

 
 

With the intention of registering the conveyance deed, the petitioners sought sale permission under the Maharashtra Tenancy and Agricultural Lands Act, 1948. This permission was granted on August 1, 2012, allowing for non-agricultural use of the land for a housing scheme. After obtaining a zone certificate, the petitioners submitted the sale deed for adjudication, which the Collector approved on September 18, 2012, assessing the stamp duty at Rs. 7,14,740.

The petitioners subsequently registered the document and filed an appeal under Section 53(1A) of the Stamp Act, contesting the Collector's adjudication. However, this appeal was rejected on the grounds that the petitioners had not properly filed a preliminary appeal under Section 32B of the Act.

The court noted that the petitioners had accepted the adjudication, paid the required stamp duty, and proceeded with the registration of the deed. As such, the Appellate Authority found that the petitioners could not be considered aggrieved parties entitled to challenge the earlier decision. Moreover, the court highlighted that the petitioners failed to demonstrate any excess payment of stamp duty, dismissing their claims as speculative.

The court emphasized that the adjudication process was correctly followed, with the Collector determining the stamp duty based on the true market value of the property at the time of the conveyance. It reiterated that the petitioners had benefitted from the initial adjudication, which included a set-off for the stamp duty already paid on the prior agreement.

In light of these findings, the court concluded that there were no errors in the earlier decisions. Consequently, the petition was dismissed, reaffirming the legitimacy of the stamp duty assessment and the procedures followed in the case. The ruling serves as a reminder of the importance of adhering to the legal frameworks governing property transactions and the implications of accepting official determinations in such matters.

  MAHARASHTRA STAMP (AMENDMENT) ACT, 2015    Maharashtra Tenancy and Agricultural Lands Laws (Amendment) Act, 2004