State to Refund excessive Stamp Duty, 12% Interest to be imposed in case failure: Bombay High Court [Read Order]

State to refund - excessive stamp duty - interest - case failure - Bombay High Court - Taxscan

The Bombay High Court directed the State Government to refund the excess stamp duty within four weeks from the date of receipt of the application, failing which they will have to pay interest at the rate of 12% per annum.

The Petitioners, Macrotech Developers Ltd., and Palava Dwellers Private Ltd. are engaged in the business of real estate and carry out the development of various projects at Mumbai, Thane, Kalyan, and Bhiwandi including the lands that have been notified as the Integrated Township Projects (ITPs) situated at Kalyan and Bhiwandi.

The Respondent State had issued an order wherein the stamp duty for agreements and conveyances were reduced by 50% in Special Township Projects (STP).

The Petitioners have stated that they had registered their project “Kunal Espiree Phase III” under the Real Estate (Regulation and Development) Act, 2016 on 1st August 2017. They have stated that their project falls under the said ITP Regulations. Accordingly, the Petitioners are claiming concession of 50% of stamp duty under Regulation 13.3 of the said ITP Regulations.

The Petitioners have stated that they have been informed by the offce of the Respondent that the Petitioners were not entitled to get the benefit of the Order dated 29th August, 2020 together with the said ITP Regulations. Having been denied the benefits of the Order dated 29th August, 2020 together with the said ITP Regulations, Petitioners have challenged the same.

The division bench of Justices R.I. Chagla and K.K.Tated held that the Petitioners are entitled to the benefits of Order bearing No.Mudrank-2020/ C.R.No.136/ M-1(Policy) dated 29.08.2020 issued by the State of Maharashtra under the Maharashtra Stamp Act and subsequent orders granting concession in payment of stamp duty on the instrument of conveyance or agreement to sell of any immovable property in addition to the benefits already granted as per the Notification dated 08.03.2019 issued by the Government of Maharashtra, Urban Development Department, Mantralaya, Mumbai for Integrated Township Project.

The court directed that if any excess stamp duty is levied by the Respondent and recovered from the Petitioner or their purchasers without giving the benefit of Order issued by the State of Maharashtra and benefit of Integrated Township project, the Petitioner shall provide to the Respondents a statement of their claim of excess stamp duty within four weeks and if such claim is made, the Respondents to refund the said excess stamp duty within four weeks from the date of receipt of the application, failing which they will have to pay interest of 12% p.a.

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