UNION OF INDIA Vs. NICCO ORISSA LTD

JUDGEMENT

(1.) These are the objections filed by the respondent under Section 30 and 33 of the Arbitration Act, 1940 challenging award dated 12th July 1995 rendered by the Sole Arbitrator. Before coming to the objection, let me state in brief the dispute raised before the Arbitrator. The respondent herein was awarded contract of supply of XLPE Cables vide acceptance letter dated 20th March 1986. Vide the said acceptance the tender of the respondent herein was accepted for supply of 10 kms. quantity of particular core and size @ Rs.4,67,298/- per km. Regarding excise duty, as per the terms of the contract, excise duty was to be paid extra and was exclusive of the said price and following term was stipulated in this behalf:-

(2.) Thereafter vide letter dated 5th June 1986 aforesaid clause 19(c) was amended in the following terms:-

(3.) As per this amendment, excise duty payable was increased to 25%. However, at the same time it was provided that the respondent shall refund any amount to which it would be entitled to under MODVAT scheme. Vide letter dated 4th February 1987, however, the aforesaid letter dated 5th June 1986 was withdrawn and it was mentioned that all other terms and conditions of the contract shall remain unaltered.