
Case Law Analysis
|Bombay High Court
CGST Act Section 7 & Schedule II | Arbitral Damages Not 'Supply of Service'; Rs.1,524 Crore GST Demand Quashed : Bombay HC
Bombay High Court rules that arbitral damages for breach of contract do not constitute 'supply' under CGST Act, even when linked to settlement agreements. The judgment shields parties from GST liability on judicial compensation, reinforcing that tax laws cannot override the nature of legal awards.