RAVI BOX INDUSTRIES Vs. MCD

JUDGEMENT

(1.) THE petitioner was awarded car/scooter parking site at Ajmeri Gate to Lahori Gate by letter dated 30th November, 2004. The said allotment was pursuant to tender notice dated 10th September, 2004. It was specifically stated in the said letter that the Competent Authority was pleased to accept the offer given by the petitioner for a period of 5 years but the contract shall be renewed after expiry of every one year with enhancement of monthly licence fee by 5% every year. Another term mentioned in the letter was that the Commissioner, MCD was entitled to terminate the contract at any time in pubic interest. An agreement dated 10th December, 2004 was also executed between the petitioner and the respondent/MCD. One of the terms and conditions mentioned in the agreement was that the MCD had right to revise parking charges during the currency of the contract and in case of revision of parking charges, licence fee paid by the contractor shall stand revised in the same proportion for the remaining period. There is also an arbitration clause in the agreement.

(2.) AFTER award of the contract, the agreement was revised/renewed from year-to-year basis upto 31st December, 2006.

(3.) ON 26th February, 2007, the petitioner replied that he had no obligation to pay any service tax which was referred to as tax collection. He further expressed his unwillingness to accept any enhancement of parking fee stating, inter alia, that it was contrary to the agreement of 2004