Altisource Business Solutions India Pvt Ltd took their case to the Bombay High Court and won! The court ordered the government to pay a 6% interest on a delayed GST refund. Here's what happened.
Altisource was waiting on a tax refund of ₹2.85 crore for software export services. They argued that they should have received interest because it took way too long to get their money back.
"Interest at the rate of 6% per year should have been paid from the refund amount."
Initially, Altisource applied for the refund in April 2020. The decision-maker rejected this in September 2020. Altisource appealed, and in October 2023, the higher authority finally agreed with them. They got their refund in February 2024, but no interest was added.
Judges M.S. Sonak and Advait M. Sethna looked at previous cases, like Lupin Limited, to support their decision. They ruled that interest should apply from 60 days after the original refund application, not from the date the refund was finally approved.
"The interest is charged on the delay of the refund, to make up for the person who has claimed a refund."
The government said they paid the refund within 60 days of the final application in November 2023, so no interest was due. But the court didn’t agree with this.
The court's decision reinforces that companies should be compensated for delays in tax refunds. It's a big win for Altisource and sets an example for similar cases.
The court ordered the government to pay the 6% interest within six weeks, making sure Altisource gets what they're owed.
