M/S Softwareone INDIA Private Limited vs. Union Of INDIA & Ors.

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W.P.(C)/6380/2023HC DelhiGSTCNR DLHC01018355202325 August 2025Bench: HON'BLE MS. JUSTICE PRATHIBA M. SINGH,HON'BLE MR. JUSTICE SHAIL JAIN2 pages

For Petitioner: Mr.Priyojeet Chatterjee and Mr.Sandeep Chilana, AdvsFor Respondent: Mr. Akshay Amritanshu, SSC, Ms. Drishti Rawal, Mr. Abhay Nair, Mr. Mayur Goyal, Mr. Sarthak Srivastava, Advs. Mr. Aditya Singla, SSC, CBIC

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Facts

The Petitioner, M/s Softwareone India Private Limited, had to repeatedly approach the Court or CESTAT for payment of statutory interest on a refund claim granted by the Commissioner (Appeals) on March 12, 2019. This prolonged litigation spanned over five years, from 2019 onwards. The Delhi High Court, in an order dated August 25, 2025, disposed of the petition with a direction for the Petitioner to be entitled to costs of Rs. 50,000/- from the GST department, payable within four weeks. The GST Department subsequently filed an application seeking modification of this order, specifically to waive the imposed costs. They contended that the refund amount, which was the subject of the petition, was paid to the Petitioner within one month of the writ petition's filing.

Held

The Court held that the costs imposed on the GST Department could not be waived entirely, considering the numerous rounds of litigation the Petitioner had to endure to obtain the refund and statutory interest. The Court acknowledged the Petitioner's prolonged struggle, which spanned over five years. However, taking into account the submission by the GST Department that the refund was paid within one month of the writ petition's filing, the Court decided to reduce the quantum of costs. The original cost of Rs. 50,000/- was reduced to Rs. 20,000/-. The application for modification was disposed of in these terms.

Key Issues

1. Whether the GST Department's application for waiver or modification of the cost order dated August 25, 2025, should be allowed, considering the Petitioner's prolonged litigation for statutory interest on a refund. Petitioner's Argument: The Petitioner, through their counsel, implicitly argued that the costs imposed were justified due to the extensive period of over five years they had to pursue the refund and statutory interest, involving multiple legal forums. The initial order granting costs of Rs. 50,000/- was a recognition of this hardship. Revenue/State's Argument: The GST Department, through their counsel, argued that the refund amount was paid promptly within one month of the writ petition being filed. Therefore, they sought a waiver of the costs imposed by the Court, as the primary issue of refund disbursement was resolved quickly after the petition's institution.

Sections Cited

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Cause title — parties, addresses and appearances

$~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6380/2023 M/S SOFTWAREONE INDIA PRIVATE LIMITED.....Petitioner Through: Mr.Priyojeet Chatterjee and Mr.Sandeep Chilana, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Akshay Amritanshu, SSC, Ms. Drishti Rawal, Mr. Abhay Nair, Mr. Mayur Goyal, Mr. Sarthak Srivastava, Advs. Mr. Aditya Singla, SSC, CBIC CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE MADHU JAIN

O R D E R % 07.11.2025

This hearing has been done through hybrid mode. CM APPL.65975/2025 in W.P.(C) 6380/2023

This application has been filed on behalf of the GST Department seeking modification of the order dated 25th August, 2025 passed by this Court, only to the extent of the direction for payment cost of Rs. 50,000/- which was imposed on the GST Department. The order dated 25th August, 2025, directing the imposition of cost on the Department reads as under:- “7. In this case it is noticed that the Petitioner has been forced to repeatedly approach the Court or the CESTAT for payment of statutory interest for over a period of over 5 years i.e., from 2019, where the Commissioner (Appeals), vide order dated 12th March, 2019 granted the refund claim of the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/11/2025 at 12:52:38

Petitioner. Accordingly, the petition is disposed of with the direction that the Petitioner shall be entitled to cost of Rs.50,000/- from the GST department. The same shall be paid within four weeks.”

The present application filed by the GST Department states that the amount of refund, which was the subject matter of this petition and was payable to the Petitioner was paid within one month of the filing of the writ petition itself. Hence, the waiver of costs imposed on the GST Department is sought in this application.

In the opinion of this Court, considering the number of rounds of litigation that the Petitioner had to undergo in order to obtain the refund, the Court is of the opinion that the costs cannot be waived. However, in the facts, as brought forth by the GST Department in this application, the costs is reduced to Rs. 20,000/-.

The present application is disposed of in said terms. PRATHIBA M. SINGH, J. MADHU JAIN, J. NOVEMBER 7, 2025/ys/ss This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 15/11/2025 at 12:52:38

Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.