STERLITE INDUSTRIES (INDIA) LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Department of Telecommunications invited tenders for purchase of 350 LCKM Polythene Insulated Jelly Filled cables (PIJF) against a tender inquiry on 29.01.1997. The tender was opened on 25.03.1997. M/s Sterlite Industries (India) Limited gave the most competitive bid for five categories of cables and was thus the L1 for the same. M/s Paramount Communications Limited was the L1 for eight kinds of such cables. The supply was sourced by DoT to various suppliers at the price of L1 and the quantities varied. Thus, the L1 got the benefit of supplying larger quantities.

(2.) THE controversy in the present petition arises on account of the fact that the two petitioners are located in areas where sales tax exemption has been granted. It is the case of the petitioners that they are entitled to the composite price which has been accepted by the respondents. On the other hand, the stand of the respondents is that one of the components of the composite price is sales tax and the sales tax component is liable to be reimbursed against a receipt of payment of sales tax. It is, thus, the stand of the respondents that in case of other suppliers, the price inclusive of sales tax is paid but the sales tax component is reimbursed only on such a certificate being provided while in the case of the petitioners, since they claim to be exempted from payment of sales tax and no such certificate is provided, the respondents are not liable to make that part of the composite price.

(3.) THE controversy really revolves around the interpretation of the various clauses of the conditions for supply forming part of the bid document. In order to appreciate the controversy, it is necessary to reproduce some of the relevant clauses of Instructions to Bidders given in the Bid Documents:-