TaxTMI 
TaxTMI 
2011 (8) TMI 840
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....s it was liable to pay the same at four per cent and therefore should pay the balance sales tax at two per cent. Briefly stated, the facts of the case are that the State invited tenders for supply of material including GI pipes. One of the terms and conditions was that the rate should be f.o.r. ex-work and freight up to nearest broad-gauge railheads, i.e., Kalka, Una, Kirtpur, Pathankot, etc. The rates were to be quoted exclusive of CST/GST which if applicable at the time of tendering were to be mentioned separately. Clause 16 of the agreement contained an arbitration clause. The petitioner-company submitted its quotation for GI pipes and one of the stipulation of the quotation reads as follows:- "3. The rates are exclusive ....
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....the parties, the petitioner should be directed to avail of the remedy in such arbitration proceedings. The undisputed facts as they emerge from the petition are that the rate of tax payable is four per cent. It is also not disputed that the petitioner-company paid tax at four per cent. It is also admitted case of the petitioner that in the quotation the rate of Central sales tax was mentioned as two per cent and not four per cent. The petitioner claims that this was done by mistake and since an overall reading of the contractual documents shows that the State was liable to pay sales tax "as applicable" therefore the State should pay the sales tax at four per cent. As far as the preliminary objection of referring the matter t....