TaxTMI 
TaxTMI 
2020 (10) TMI 163
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....hat the OC is one of the leading traders in the market of thermal coal and the CDs is also engaged in the business of trading thermal coal. The OC and the CD after mutual negotiation entered into an agreement on 27.02.2019 wherein the CD agreed to deliver 10,000 MT of thermal coal at the basic value of INR 7700 plus 400 (compensation cess) plus 5% GST plus 1% TCS to the OC within Sixty days from the arrival date from Vessel MV Salt Lake City and the payment was to be made in advance i.e. within Forty Five days from arrival of the vessel. 3. The OC made advance payment as demanded by the CD and also advanced a security deposit of Rs. 80,00,000/- (Rupees Eighty lacs only) within 01.03.2019 to the CD. The OC also paid an amount of Rs. 40.00,0....
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....bligations of procuring coal from the CD in view of reduction of price of coal and to reduce its losses. It is the further contention of the CD that the CD No. 1 is a solvent Company having a turnover of more than Rs. 370 crores (Rupees Three hundred Seventy crores only) during the financial year ending 31.03.2019 and, therefore, the above Company Petition is not maintainable in view of the financial solvency of the CD No. 1. The CD also disputing the assertion of the OC with regard to supply of coal from a particular vessel and also disputing the assertion of timely payment of the OC as per the terms & conditions of the agreement. It is also the contention of the CD that the OC willfully refused to accept delivery of coal on account of red....
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....sides submitted their arguments in the line of their assertions and pleadings and also replied upon the above citations. From the careful examination of the record and the submissions, it makes it very clear that the OC and the CD have entered into an agreement with regard to purchase and supply of coal and the OC refused to accept the coal supplied by the CD both on the ground of inferior quality and also in not supplying the coal through a particular vessel by name MV Salt Lake City. It also appears that the prices of coal have been dropped after making payment by the OC to the CD at a particular price. The possibility of refusal of acceptance of coal by the OC due to fall of prices cannot be ruled out, since the advocate appearing for th....