Contractual risk allocation bars customs duty reimbursement claim; arbitral award upheld under limited Section 34 review.

An arbitral award rejecting reimbursement of CVD and SAD on imported tunnel boring machines was upheld because the contract was on an all-inclusive price basis and barred extra payment beyond the quoted rates unless expressly provided. No contractual clause entitled the claimant to recover additional customs duties, and the later levy of CVD and SAD was treated as part of the contractual risk allocation. The challenge also failed on delay, and the Court reiterated that interference under Section 34 is limited to narrow grounds such as patent illegality, perversity, or violation of public policy. The award therefore called for no interference.

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Issues: Whether the arbitral award rejecting the claim for reimbursement of CVD and SAD on imported tunnel boring machines suffered from any ground warranting interference under Section 34 of the Arbitration and Conciliation Act, 1996.

Analysis: The contract was on an all-inclusive price basis and specifically provided that nothing extra would be payable beyond the quoted rates except what was expressly provided in the conditions of contract. No clause entitled reimbursement of additional customs duties. The later levy of CVD and SAD on import of the tunnel boring machines was treated as a change in duties within the contractual risk allocation. The challenge to the award also failed on the delay aspect, and in any event the Court reiterated that interference under Section 34 is confined to narrow grounds such as patent illegality, perversity, or violation of public policy.

Conclusion: The arbitral award rejecting the reimbursement claim did not call for interference and was upheld.

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