TATA SONS PRIVATE LTD. v. UNION OF INDIA & ORS. – Bombay High Court
High Court, Bombay
G.S. Kulkarni, Justice & Aarti Sathe, Justice
TATA SONS PRIVATE LTD.
v.
UNION OF INDIA & ORS.
WRIT PETITION No. 4914 of 2022 WITH INTERIM APPLICATION (L) No. 17868 of 2023 dated 30.04.2026
Law : GST
Act Name : Central Goods & Service Tax Act, 2017 & Integrated Goods & Service Tax Act, 2017
Relevant Section : Section 7, 73 & 74 & Section 5 & 13
Rule Number : Rule 142(1A)
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : Partly in favour of assessee
Demand – IGST levy on arbitral award – Petitioner challenged intimation under Form DRC 01A and subsequent show cause notice demanding IGST on damages paid to NTT Docomo pursuant to London arbitral award enforced by Delhi High Court – Department alleged “supply of service” under Entry 5(e) of Schedule II CGST Act, treating Docomo’s withdrawal of execution proceedings as “tolerating an act” – Petitioner contended damages decretal amounts, not consideration for any service – Petitioner relied on CBIC Circulars (No.178/10/2022 GST and No.214/1/2023 ST) clarifying liquidated damages/penalties not taxable – Writ petition sought quashing of intimation and SCN, and declaration of Section 7 read with Entry 5(e) as unconstitutional – Respondents objected to maintainability, terming petition premature – SCN premature, petitioner has efficacious remedy before adjudicating authority; binding circulars and legal position on damages can be urged in reply and adjudication – Held: Writ petition disposed – No interference warranted at writ stage.
Represented By:
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