Maharashtra Stamp Act | Refund Of Stamp Duty Can't Be Denied On Ground That Application Was Made Before Execution Of Cancellation Deed : Supreme Court

In a recent decision regarding the refund of stamp duty under the Maharashtra Stamp Act, 1958, the Supreme Court ruled that refund cannot be denied based solely on the technicality that the refund application was filed before the execution of the cancellation deed. The court clarified that if the refund application is filed within six months of the stamp duty payment, it must be granted.\r

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The case involved an applicant seeking a refund of stamp duty paid for an unexecuted conveyance deed due to fraud by the vendor. The respondent, the stamp authority, argued that the application was filed before the cancellation deed, making it invalid. However, the court held that the application was within the six-month period from the stamp duty payment and should not be denied based on technicalities.\r

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The court emphasized that the expiry of the limitation period may bar the remedy but not the right to seek a refund of stamp duty. It cited previous judgments to support the applicant's right to refund despite the delay in filing the application.\r

In conclusion, the court allowed the appeal, stating that the applicant is entitled to receive the stamp duty paid for the unexecuted conveyance deed, emphasizing the importance of honoring legitimate refund claims.