TaxTMI 
TaxTMI 
2026 (6) TMI 439
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....udents Accommodation at IIT, Kharagpur vide NIT No. HPL/DGM/TC/ITK/2016-17/08. It is stated that the Petitioner participated in the aforesaid tender and emerged as the successful bidder at the quoted amount of Rs. 14,87,70,294/-inclusive of all taxes but excluding service tax and as per terms & conditions of NIT and tender documents. b) Thereafter, a Letter of Intent ("LOI") was issued by the Respondent No. 1 in favour of the Petitioner through letter No. HPL/DGM(C)/TC/Award/2016-17/13/446 dated 20.06.2016, and the same was accepted by the Petitioner through a letter dated 23.06.2016. c) Pursuant thereto, the Petitioner and the Respondent No. 1 signed an Agreement dated 06.10.2016. d) It is stated that the Petitioner raised Running Account ("RA") bills from time to time for part completion of the work as per the joint measurement, and the said bills were duly accepted by the Respondent No. 1. e) It is stated that the service tax of 6% was applicable to the RA bills till 30.06.2017. It is stated that the Respondent No. 1 made a payment of Rs. 2,05,56,499/- towards the first 3 RA bills to the Petitioner. It is further stated that the Respondent No.....
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....after, several communications were exchanged between the Petitioner and Respondent No. 1 as well as Respondent No. 4 through letters dated 23.11.2020, 10.05.2021, 06.09.2021, 14.09.2021, 04.01.2022, and 05.07.2022, seeking clearance of the outstanding dues raised through various RA bills, including service tax and GST implications. m) It is stated that upon perusal of letters dated 10.03.2023 and 14.06.2023 issued by Respondent No. 4 to Respondent No. 1, it became apparent to the Petitioner that Respondent No. 1 had failed and neglected to furnish the requisite information and documents to IIT Kharagpur, which came as a shock to the Petitioner. n) In these circumstances, the Petitioner, having no alternative, issued legal notices dated 08.09.2023 and 01.12.2023 calling upon Respondent No. 1 to clear the outstanding dues. In response, Respondent No. 1, vide reply dated 07.02.2024, contended that no amount remained payable on the ground that the Petitioner had executed a No Claim Certificate dated 14.09.2022 o) Thereafter, the Petitioner invoked arbitration by issuing a notice under Section 21 of the Act to Respondent No. 1, in terms of Clause 27 of the Spe....
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....ngineer-in-Charge on any matter in connection with or arising out of the contract or carrying out of the work, to be acceptable, he shall promptly within 15 days request the DGM (C), HPL in writing for written instructions or decisions. Thereupon, the DGM(C) HPL shall give his written instructions or decisions within a period of one month from the receipt of the contractor's letter. If the DGM (C), HPL fails to give his instructions or decision in writing within the aforesaid period or if the contractors is dissatisfied with the instructions or decision of the DGM (C), HPL, the contractor may, within 15 days of the receipt of DGM (C), HPL decision, appeal to the CMD, HPL who shall afford an opportunity to the contractor to be heard, if the latter so desires, and to offer evidence in support of his appeal. The CMD, HPL shall give his decision within 30 days of receipt of contractor's appeal. If the contractor is dissatisfied with this decision, the contractor shall within a period of 30 days from receipt of the decision, give notice to the CMD, in the prescribed format attached with SCC as Annexure-X HPL for appointment of arbitrator failing which the said decision ....
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....rred to him by the appointing authority and give separate award against each dispute and claim referred to him and in all cases where the total amount of the claim by my party exceeds Rs. 1,00,000/- the arbitrator shall give reasons for the award. It is also a term of the contract that if any fees are payable to the arbitrator, these shall be paid equally by both the parties. It is also a term of the contract the arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties calling them to submit their statement of claims and counter statement of claims. The venue of the arbitration shall be New Delhi. The fees, if any, of the arbitrator shall, if required to be paid before the award is made and published, be paid half and half by each of the parties." (Emphasis Supplied) 7. Clause 31 of the Agreement, which determines the payment of taxed and duties, is reproduced hereinbelow and the same reads as under: "TAXES AND DUTIES 31. The bidder should quote the rates inclusive of all taxes as applicable in the State at time of submission of the tender like sales tax, Work Contract Tax, value Add....