Arbitral Award Granting GST Reimbursement on Works Contract Upheld

The Karnataka High Court has upheld an arbitral award directing reimbursement of GST on a works contract, holding that the interpretation adopted by the Arbitral Tribunal regarding the value of non-tendered items and the consequent GST liability did not warrant judicial interference under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996. 

The Court reiterated that it cannot re-appreciate evidence or substitute its own view merely because another interpretation is possible where the arbitral view is plausible and based on the contractual record.