The Bombay High Court has decided that Altisource Business Solutions India Pvt Ltd should get interest on a late GST refund. Here's what happened.
Altisource asked for a GST refund of ₹2,85,63,804 on April 23, 2020. They thought their software exports shouldn't be taxed. But on September 14, 2020, the authorities turned down their refund request. Altisource appealed, and on October 27, 2023, the higher authority finally approved the refund. They received the money by February 5, 2024—but no interest was included.
Altisource argued they should get interest because there was a 1,232-day delay from their original request. They said interest at 6% per year should be given. The authorities, however, claimed the refund was handled within 60 days of the new application on November 28, 2023, so no interest was needed.
"Interest is charged for the delay in the refund to make up for the wait the person experienced." —Court
Altisource's lawyer, Mr. Jarwal, mentioned earlier cases like Lupin Limited vs. Union of India, where interest was given from the date of the original request. The court agreed with this idea, highlighting that interest is meant to make up for delays.
Judges M.S. Sonak and Advait M. Sethna decided in favor of Altisource. They ruled that interest at 6% per year should be paid starting 60 days after the original request date in 2020.
"We must reject the argument... this is not what the law intends." —Court
The court ordered the government to pay the interest within six weeks. This decision is similar to other rulings from different high courts, supporting the idea that taxpayers should be compensated for long waits.
In summary, Altisource won the case, showing that patience and determination can pay off when seeking fairness.
