SARTHI PHARMACEUTICALS LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) . In all these petitions the facts are inter connected and commons questions are involved and therefore, they are dealt with together by this common judgment.

(2.) . The relevant facts are that the petitioners had entered into a contract for supply of drugs by submitting tenders. One of the conditions of the tender was condition no.43, which reads as under:

(3.) . The contention raised on behalf of petitioner no.1 is that at the time when the agreement was entered into on 21.3.2000, the applicable excise Duty was 8% and thereafter on 4.4.2002, the Excise duty is increased from 8% to 16%. It is the case of the petitioners that on account of the aforesaid increase of excise duty from 8% to 16%, the petitioners were entitled to have increase in the price proportionately and the petitioners of SCA No. 10381 of 2000 applied for revision of rates on account of increase in Central Excise. However, the stand of the respondent is that since the increase was not demanded within the stipulated time limit, the request for increase in the rates could not be considered. It is also the case of the respondent that since the petitioners stopped supplying the drugs and since the drugs were required in the Government hospitals, the respondent had no other alternative but to purchase the drugs and medicines from the open market and therefore, the drugs and medicines were purchased from the open market.