Missed Deadline: Couple Loses Stamp Duty Refund Appeal Due to New Law.
18 April 2024
Consumer Law >> Civil & Consumer Law | Property/Real Estate Law >> Property & Real Estate | Taxation and Duty >> Property & Real Estate
A Mumbai couple's attempt to recover stamp duty paid on a cancelled flat purchase has been denied by the court. The couple argued that they should be eligible for a refund under a more lenient law, but the court ruled that a stricter, recently amended law applied to their case.
The couple bought a flat in August 2014 and paid the stamp duty. However, due to problems with the property, they cancelled the agreement in March 2015 through a registered deed. In August 2016, they applied to get their stamp duty refunded.
The crux of the case revolved around two key points:
- Authority's Power to Review: The couple argued that the government authority overseeing stamp duty refunds had no right to reverse its initial decision granting them a refund. The court acknowledged that such power of review typically doesn't exist, but due to the couple's actions (appealing an order they believed could be reviewed) and the way refund requests are processed (involving multiple authorities), the court didn't dismiss the case on this technicality.
- Applicable Law: A crucial question was which law governed the refund eligibility. The law regarding time limits for such refund applications had been amended in April 2015. The couple argued that the older, more relaxed law (allowing two years from the registered cancellation deed) should apply since their cancellation deed was executed in March 2015.
The court, however, disagreed. It pointed out that the right to claim a refund only arises after the cancellation deed is registered. Since the registration happened in April 2015, after the amended law came into effect, the stricter time limit of six months from registration applied. As the couple filed for the refund only in August 2016, they missed the deadline under the new law.
In conclusion, the court's decision upholds the amended law with its shorter time limit for claiming stamp duty refunds on cancelled property purchases. The couple's claim was denied as their application fell outside the permissible timeframe.