Delayed refund interest can justify compensatory costs after prolonged litigation and avoidable recourse to court.

Statutory refund interest had already been paid before disposal, but the Court held that prolonged delay and repeated recourse to the Tribunal and Court justified an award of costs against the GST department. The operative point was that delayed payment of admitted refund interest, followed by unnecessary litigation to recover it, can attract compensatory costs in favour of the claimant. The petition was therefore disposed of with costs awarded to the petitioner.

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Issues: Entitlement to relief and costs where delayed refund interest had already been paid during the proceedings.

Analysis: The refund-related interest claimed by the petitioner was stated to have been paid and acknowledged before disposal of the petition. The remaining controversy was the consequence of prolonged non-payment and repeated recourse to the Tribunal and the Court for recovery of statutory interest. In view of the prolonged delay and the need for repeated proceedings, the Court considered it appropriate to award costs against the GST department.

Conclusion: The petition was disposed of with an award of costs of Rs. 50,000 to the petitioner.

Final Conclusion: The dispute over delayed payment of refund interest stood concluded, and the petitioner obtained monetary costs for the prolonged litigation.

Ratio Decidendi: Where statutory refund interest is ultimately paid after prolonged delay and repeated litigation, the Court may award costs to compensate the successful claimant for avoidable recourse to proceedings.

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