Quest Issue: Ring of the Dead Recharge

[Daemrius]

Default Ring of the Dead Recharge
Turned in my RoTD to merchant Xantis Ixtax with 1plat / 10 gold For a recharge, assuming this quest is still viable ( From what i recall the quest for the ring is no longer viable but the recharges from this merchant / quest is )

Response from turn in:

Xantis Ixtax says "When you learn to serve the Dead, then I will find the time to speak of such things."

At this point i figured it was faction related, the Ring was no longer in my inventory, and not for sale on the merchant ( i made sure she had room for buy back before turn in )

At this point i figured it was faction related

Xantis Ixtax judges you amiably.

Am i SoL on this because my faction was not high enough and the NPC has successfully ate this item?