The Arbitral Tribunal has not rendered any decision in respect of the issue of and has in fact left the disputes in this regard undecided. This Court is of the view that since the impugned award does not address the dispute, the impugned award in this regard is liable to be set aside.
Arbitral Tribunal —GST —– The parties challenged the arbitral award dated 15.03.2021 delivered by an Arbitral Tribunal. The impugned award was rendered in the context of disputes that have arisen between the parties in connection with the contract whereby Kone Elevator India Private Limited had agreed to supply, install and commission elevators, and Delhi Metro Rail Corporation had agreed to purchase the same. It was agreed that the contract price would be inclusive of all taxes, levies duties, cess, freight, insurance and other incidental charges except the Excise Duty and VAT/GST. It was agreed that the aforesaid levies would be reimbursed by DMRC on actual basis. Kone supplied 85 elevators prior to 30.06.2017. Kone raised tax invoices against this after 01.07.2017 under the GST regime. GST at the rate of 18% was payable at the material time when the invoices were raised. DMRC refused to reimburse the same because prior to 30.06.2017, DMRC had already reimbursed a sum of Rs.1,27,30,042/- as Excise duty on the said supplies and it claimed that ITC for the said amount. The Tribunal held that Kone had rightly raised the invoice under the GST regime, DMRC’s counter-claim for refund of the amount of Rs.2,88,76,473/- was rejected. The issues were decided in favour of Kone. The court observed that question regarding ITC in respect of the Excise duty paid prior to 30.06.2017, was not replied by the Tribunal. The court further observed that the principal dispute before the Arbitral Tribunal remains unadjudicated. The Court further observed that since the impugned award does not address the dispute, the impugned award in this regard is liable to be set aside.
Held that:- The Hon’ble High Court set aside the impugned award and grated liberty to the parties to initiate fresh proceedings.
The Arbitral Tribunal has not rendered any decision in respect of the issue of and has in fact left the disputes in this regard undecided. This Court is of the view that since the impugned award does not address the dispute, the impugned award in this regard is liable to be set aside.
Arbitral Tribunal —GST —– The parties challenged the arbitral award dated 15.03.2021 delivered by an Arbitral Tribunal. The impugned award was rendered in the context of disputes that have arisen between the parties in connection with the contract whereby Kone Elevator India Private Limited had agreed to supply, install and commission elevators, and Delhi Metro Rail Corporation had agreed to purchase the same. It was agreed that the contract price would be inclusive of all taxes, levies duties, cess, freight, insurance and other incidental charges except the Excise Duty and VAT/GST. It was agreed that the aforesaid levies would be reimbursed by DMRC on actual basis. Kone supplied 85 elevators prior to 30.06.2017. Kone raised tax invoices against this after 01.07.2017 under the GST regime. GST at the rate of 18% was payable at the material time when the invoices were raised. DMRC refused to reimburse the same because prior to 30.06.2017, DMRC had already reimbursed a sum of Rs.1,27,30,042/- as Excise duty on the said supplies and it claimed that ITC for the said amount. The Tribunal held that Kone had rightly raised the invoice under the GST regime, DMRC’s counter-claim for refund of the amount of Rs.2,88,76,473/- was rejected. The issues were decided in favour of Kone. The court observed that question regarding ITC in respect of the Excise duty paid prior to 30.06.2017, was not replied by the Tribunal. The court further observed that the principal dispute before the Arbitral Tribunal remains unadjudicated. The Court further observed that since the impugned award does not address the dispute, the impugned award in this regard is liable to be set aside.
Held that:- The Hon’ble High Court set aside the impugned award and grated liberty to the parties to initiate fresh proceedings.