Punjab & Haryana HC: Stamp Dues Recovery after 3 years not Permissible

Punjab haryana High court Stamp duty Collection

Anushka Sharma-

Published On: November 14, 2021 at 14:37 IST

The Punjab and Haryana High Court held that initiating a Case to collect an Alleged Stamp Duty deficiency beyond three years was impermissible. 

The Allegation was made in a Case where the Respondents claimed the three-year Statute of Limitations did not apply because the issue included Fraud Detection rather than Undervaluation.

The Case was brought to the attention of the High Court after an Asset reconstruction Company filed three Petitions against the State of Punjab and other Respondents through senior Counsel Munisha Gandhi, Vaibhav Sharma, and Vedika Gandhi.

According to Justice Rajbir Sehrawat, the Respondents undisputedly brought the action to collect an Alleged Stamp Duty shortage three years after the assignment Deeds were registered.

“Under Section 47-A (3), the Collector is fully Authorised to determine the nature, character and description of the Deed. Hence, Section 47-A not only deals with the under-valuation as disclosed in the deed presented for registration, it also deals with all possible situations through which an attempt can be made to avoid payment of full stamp duty,” Justice Sehrawat observed, adding the Bar of Limitation would still be applicable.

Allowing all Writ Petitions, Justice Sehrawat set aside the impugned Orders, including an Order on the recovery of alleged deficient Stamp Duty passed by a DC.

Also Read: Gujarat HC to Authority: Repay money collected as Stamp Duty on Bills of Entry filed for Imports

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