JUDGMENT

Azizah Nawawi JCA:

Introduction

[1] This is an appeal against the decision of the learned High Court Judge dated 28 September 2020.

[2] The learned High Court Judge had allowed the Respondent's Judicial Review application to quash the Director General of Customs ("DG") decision to only allow a nominal portion of the Respondent's claim for exceptional input tax ("Exceptional ITC") under reg 46(1) of the Goods and Services Tax Regulations 2014 ("GST Regulations") for the sum of RM2,231.21 instead of the full sum of RM45,873,669.66.

The Brief Facts

[3] The principal activities of the Respondent are to design, construct, commission, operate, and maintain a 2,000 MW Coal-Fired Power Plant in Mukim Jimah, Port Dickson, Negeri Sembilan ("Power Plant"). The Power Plant was to commence commercial operation in year 2019.

[4] The Respondent had entered into a Power Purchase Agreement dated 22 July 2014 ("PPA") to sell electricity to Tenaga Nasional Berhad ("TNB") for a period of 25 years.

[5] The Respondent made an application to the DG for it to be registered under Goods and Services Tax Act 2014 ("GST Act"). The application was approved with the effective date of 1 March 2018.

[6] However