Background: North American Coal Corporation India Private Limited (NACC) provided technical consultancy services related to coal mining under an Association Agreement with Sasan Power Limited (SPL). Due to breaches by SPL, NACC terminated the agreement and claimed past dues, reimbursement of expenses, and liquidated damages from SPL. The question before the AAR was whether the liquidated damages claimed by NACC would attract GST.

Points of Dispute: The main issue was whether the liquidated damages claimed by NACC from SPL qualify as a ‘supply’ under GST law, thereby making them liable for GST.