Bombay HC says Lawful Return Periodicity Cannot Trigger Interest

Microsoft Corporation was entitled under the MVAT Rules to file six-monthly returns for FY 2013-14 because its preceding-year tax liability was below the prescribed threshold. Although it subsequently paid over ₹41 crore in tax, the High Court held that interest could not be imposed by retrospectively treating it as a monthly taxpayer. Compliance with the statutory framework cannot be converted into a tax default merely because Revenue considers the resulting benefit undesirable.