The Hon’ble Bombay High Court in the case of Tata Sons Private Ltd. v. Union of India & Ors. [Writ Petition No. 4914 of 2022, order dated April 30, 2026] held that settlement of a foreign arbitral award and withdrawal/suspension of enforcement proceedings by the award-holder pursuant to such settlement does not amount to a “supply” under Section 7 of the CGST Act read with Entry 5(e) of Schedule II. The Court quashed the DRC-01A intimation and Show Cause Notice seeking to levy IGST of ₹1,524.35 crore on damages paid by Tata Sons to NTT Docomo, holding that there was no independent agreement involving consideration for tolerating an act or refraining from an act.
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