Arbitral Tribunal Acted With Patent Illegality, Against Indian Law In Awarding Reimbursement Of Service Tax Along With Interest: Calcutta High Court

The Calcutta High Court set aside an arbitral award that granted reimbursement of service tax along with interest to the respondent, citing patent illegality. The court found that the arbitral tribunal acted against the fundamental policy of Indian law by awarding reimbursement of service tax, which was not supported by the contract between the parties. The court emphasized that arbitral awards must adhere to the terms of the contract and the applicable law, ensuring that arbitral tribunals do not exceed their jurisdiction or grant reliefs that are not contractually or legally justified.