Demand for deficit stamp duty is barred by limitation under Section 53A of the Maharashtra Stamp Act, 1958, if raised beyond the 6-year period from the date of the certificate.

JUDGMENT :

1. This petition under Article 226 of the Constitution of India seeks to challenge orders dated 2nd May 2016 and 16th July 2016 passed by Respondent Nos.1 and 2, whereby demand of deficit stamp duty with respect to Flat Nos.320 and 218 in the Petitioner’s Society has been raised. The effect of this demand is on the right of the Petitioner to obtain deemed conveyance in their favour and, therefore, present petition is filed by Petitioner-Society.

2. The Petitioner is a Tenant Co-Partnership Housing Society Limited registered under the Maharashtra Co-operative Societies Act, 1960 vide certificate of registration dated 14th June 1978. On 11th February 2014, the Competent Authority allowed the application of Petitioner for grant of deemed conveyance in favour of the Petitioner. Pursuant to the said order, Petitioner was required to comply with certain formalities with the Registrar of the Co-operative Societies. The said Registrar requested Petitioner to seek the opinion of Respondent No.1-Collector of Stamps on the stamp duty payable on the deemed conveyance deed which have to be registered in favour of Petitioner.

Petitioner accordingly approached Respondent No.1 alongwith draft Conveyance Deed and produced all the documents required for determination of stamp duty payable on the deemed conveyance.

3. On 28th September 2015, Respondent No.1 passed an interim order arriving at deficit stamp duty with respect to Flat Nos.218 and 320 amounting to Rs.1,61,940/- and Rs.1,86,080/- respectively. The said interim order merged with the final order dated 2nd May 2016 and the deficit stamp duty with respect to document relating to Flat No.218 was calculated at Rs.25,150/- and with regard to Flat No.320 was calculated at Rs.1,90,040/-.

4. Against the interim order dated 28th September 2015, an appeal was filed by the Petitioner with Respondent No.2 who dismissed the appeal on the ground that the issue raised by the Petitioner is not within the scope of Section 32B of the Bombay Stamp Act, 1958 (now Maharashtra Stamp Act) and further observed that the Petitioner ought to have approached the Chief Controlling Revenue Authority in respect of his grievance.

5. It is on this backdrop that the Petitioner is before this Court challenging the orders dated 2nd May 2016 and 16th July 2016.

6. Mr. Dewal, learned counsel for the Petitioner submitted that the effect of the impugned communication and order is that the Petitioner would be deprived of the deemed conveyance and furthermore Respondent Nos.3 and 4 are also members of Petitioner and, therefore, they are entitled to challenge the impugned orders in the present petition. Mr. Dewal further submitted that the owners of Flat Nos.218 and 320 would make the payment to the Petitioner’s Society and who in turn would make the payment to Respondent Nos.1 and 2 if the petition is dismissed.

7. At the outset, Mr. Dewal submitted that insofar as demand in relation to Flat No.218 is concerned, the amount involved is only Rs.25,150/- which Respondent No.4 has already paid and he has instruction not to press for the same on account of smallness of the amount. However, with respect to the demand in relation to Flat No.320 is concerned, he submitted that the document, in relation to the said flat, of 1989 was subject matter of Amnesty Scheme and full stamp duty of Rs.7,060/- was paid in 1995. The acknowledgement of the payment and the certificate issued by Collector of Stamps, Thane is annexed at page 45 of the petition and the relevant extracts are re-produced herein under :-

“Certified u/s. 41 of the Bombay Stamp Act, 1958 that the full stamp duty of Rs.7,060/- (Seven thousand sixty) only has been paid in respect of this Instrument.

Subject to the provision of Sec. 53A of Bombay Stamp Act, 1958.”

8. Mr. Dewal submitted that this certificate was issued on 2nd March 1995 and was subject to Section 53A of the Bombay Stamp Act. Section 53A provides for time limit of 6 years for raising the demand on account of de