Section 53A – Maharashtra Stamp Act – Order passed after six years

 

On 12.12.2003, the petitioner executed agreement of sale with a developer for purchase of office premises for Rs.1,65,97,620/- and paid stamp duty of Rs.16,59,950/-. 

 From 2007 to 2012, notices under Section 53A of the Stamp Act were issued for deficit stamp duty.  By the order dated 14.8.2012 of the respondent no.2, the deficit stamp duty of Rs.8,21,000/- was demanded on the instrument dated 15.12.2003.

 HELD that Section 53A(1) provides for maximum of 6 years from the date of the certificate for not only exercising the power but also to pass an order for recovery of deficit stamp duty.  After initiation of the proceedings, the reasonable period to conclude the same would be maximum 2 years. The period of two years from the date of initiation of proceedings would expire on 2.3.2009 because the first Section 53A notice was issued on 2.3.2007 and the impugned order was passed on 14.8.2012.   Therefore, on this count also, the impugned orders are passed beyond the limitation period.

 In revenue matters, the proceedings cannot be kept in abeyance for a long period.   The reasonable period has to be construed based on the scheme of the Act.  Thus, even if the period of six years for initiation and conclusion of proceedings is considered, still the impugned order was passed after more than eight years.

 Judgment dated 7.8.2025 of the High Court of Bombay in Writ Petition No.2757 of 2012 of Sony Mony Electronics Limited   Vs.   state of Maharashtra through Collector of Stamp and another