TaxTMI 
TaxTMI 
2024 (8) TMI 957
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....the "KGST Act"] and Central Sales Tax Act, 1956 [hereinafter referred to as the "CST Act"]. During the assessment years 2000-01 and 2004-05, it had taken up works contracts for KINFRA and had accordingly entered into contract with the said company for the construction of a 110KV Sub-Station. The tender documents comprised of general conditions of contract, special conditions of contract and the formal contract agreement, and the terms and conditions therein specified the items that had to be supplied by the petitioner for the purposes of incorporation into the works contract that was undertaken by it for KINFRA. The terms of the contract made it clear that while the technical specifications and the make of the individual items/component parts as specified therein had to be adhered to by the petitioner while affecting the supply of the said parts, a choice was left to the petitioner to source the parts either from within the State or from outside the State. 3. It would appear that in respect of those parts that were sourced by the petitioner from within Kerala, the petitioner discharged his liability to sales tax under the KGST Act while incorporating the said parts in the works ....
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....er-State movement of the goods had no relation to any obligation of the petitioner under the said contract. We find, however, that the Tribunal itself then proceeded to consider the tender documents that were available before it for the purposes of determining the nature of the transaction entered into between the petitioner and KINFRA. Given the fact that the Tribunal itself had virtually accepted the tender documents as pertaining to the contract between the petitioner and KINFRA, we are of the view that it ought to have considered the clauses in the tender documents in a commercial sense and taken note of the clauses in the agreement between the parties that dealt with the manner of supply of goods for the execution of the works contract. In particular, the provisions of clauses 4.1.5, 4.31, 5.1.1, 5.3.4, 5.3.5, 5.5, 9.0, Schedule of Requirements & Estimate for the 110 kV Sub-station, which are extracted hereunder, ought to have been noticed : 4.1.5 'Contract' shall mean and include the tender notice/invitation to tender, the tender and all pertaining documents, the letter of intent/the work order, the correspondence exchanged after receipt of tenders and before is....
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....s, routine test certificates and acceptance test certificates are also to be submitted. 5.3.5 Inspection of material and Equipment The materials should be inspected/tested prior to the despatch from the manufacture by Purchaser/Consultant. The inspection call should be given at least fifteen days in advance so as to deputy the officials of Purchaser/Consultant for the inspection. Such inspection will be of the following categories : (1) Inspection of materials/equipment to be witnessed at the manufacturers premises in accordance with relevant BIS/Agreement Inspection Procedure. (2) To receive materials at site with manufacturers Test Certificate(s). (3) To receive materials after physical inspection at site. Similarly, for fabricated equipment, the contractor will first submit dimensional drawings for approval before fabrication is taken up in the factory. Suitable state inspection at factory also will be made to ensure proper use of materials, workmanship and quality control. All the materials and equipment supplied by the contractor for this work shall be new and should confirm to relevant BIS Specificat....
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..... The offers shall be strictly on the basis of the makes recommended. However, the bidders can offer alternative makes under deviation. Such deviations shall follow with technical literature of the material/equipment offered. Such deviation shall be considered only if the offer is furnished for the specified make as per the tender. Where specified make and model nos. are indicated in the schedule of requirements, the bidder should quote for the same items. 9.3 LIST OF APPROVED MAKES OF EQUIPMENT AND MATERIALS Sl. No. Item Make of Materials/Equipment A. 110kV Equipment 1 Power Transformer TELK, ABB, Crompton Greaves, BHEL 2 Capacitive Voltage Transformer TELK, ABB, Crompton Greaves. 3 Potential Transformer TELK, ABB, Crompton Greaves. 4 Current Transformer ............................. TELK, ABB, Crompton Greaves. SCHEDULE OF REQUIREMENTS & ESTIMATE FOR THE 110 kV SUBSTATION Based on KPWD 96 & market rates 1999 PART A : ELECTRIFICATION WORK Item No. Description Unit Qty. Rate Amount (Rs.) Part I - 1.0 110 kV Equipment Supply, Installation, Testing and Commiss....