The Madurai Bench of the Madras High court has ruled that Sub-Registrars cannot straight away demand deficit stamp duty years after registration of a sale deed, without first issuing a show cause notice to the party concerned.
Justice T S Sivagnanam, allowing the petition filed by a property owner at Melakarur, quashed the sub-registrar's order, dated July 24, 2014, directing the petitioner to pay the deficit stamp duty for the property purchased in 2010.
The judge said the petitioner had purchased the property and registered the sale deed on April 30, 2010.The sub-registrar registered the document and released it.
After four years, the petitioner received a demand notice for Rs 50,279 towards deficit stamp duty.The petitioner said the sub-registrar was not legally authorised to make such a claim.
Agreeing with him, the judge said "No particulars have been furnished to petitioner explaining on what basis the additional stamp duty has been demanded after releasing the document as early as in 2010."
Besides, no proceedings were initiated under Sec 47-A of Indian Stamp Act which empowered the sub-registrar not to release the sale deed and refer the issue to the collector for determining the stamp duty, the judge said.
