Costs on GST Department upheld in principle, but reduced after repeated refund litigation prompted partial modification.

The Delhi High Court declined to waive costs imposed on the GST Department, finding no basis to excuse them in light of the repeated litigation the taxpayer had been compelled to undertake to secure a refund. At the same time, the Court accepted the Department's factual submissions in the modification application and reduced the costs amount. The operative effect was that the earlier costs order was not set aside, but the burden was moderated by reducing the costs to Rs. 20,000.

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Issues: Whether the costs of Rs. 50,000 imposed on the GST Department in the earlier order should be waived or reduced.

Analysis: The Department sought modification of the earlier order only to the extent of the costs. The Court declined to waive the costs in view of the repeated litigation the petitioner had been compelled to undertake to secure the refund. However, considering the facts placed by the Department in the application, the quantum of costs was reduced.

Conclusion: The request for waiver of costs was rejected, and the costs were reduced to Rs. 20,000.

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