In Brief
A petroleum company appealed against a High Court judgment that allowed an airline's counter claim for CENVAT invoices to proceed in arbitration. The Supreme Court held that an arbitrator has jurisdiction to consider such a counter claim on its merits, even if arguably outside the original arbitration scope. The Court ruled that outright rejection at the threshold is improper; the arbitrator must proceed to assess whether the claim is arbitrable and within scope. The High Court's judgment was affirmed, and the case was remanded to the arbitrator to decide on substantive merits without prejudice from the High Court's observations on CENVAT credit availability.", "subject_tags">["Arbitration", "Jurisdiction", "CENVAT", "Counter-Claims", "Tax Law"]
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