Mentioning of GST rate in Notice for Tenders —– The Appellant department challenged the High Court decision. The petitioner sought direction to the Respondent i.e., the Tendering Authority to clarify that the Procurement Product must be taxed @ 18% under the Relevant HSN Code 84148030 to ensure a Uniform Bidding from the parties, and also to ensure a level playing field for all Bidders/ Suppliers and to stay the effect of the opening of the Subject Tender. The Notice Inviting Tender revealed that the bidders were directed to specify the percentage of local content of the material being offered. The rate quoted by the writ petitioner was more than 20 per cent of the rate quoted by L1 and also L2 and L3, on account of writ petitioner quoting much higher rate, which was the correct rate, whereas L1 to L3 did not quote the correct GST rate. The High court directed the respondent no.2 i.e. Diesel Locomotive Works, Varanasi that if the GST value is to be added in the base price to arrive at the total price of offer, he would be required to clarify the Issue, If any, with the GST authorities relating to the applicability of correct HSN Code of the procurement product and mention the same in the tender. The court observed that the bidders are called upon to declare the tax rate, as applicable. However, the information about the tax liability is not forthcoming in the bid, the bid will be considered as inclusive, and any liability on account of such tax, would be payable by the concerned bidder. The court further observed that the appellants have made out a clear case for interference with the impugned Judgment. The supplier of the goods and services i.e. the successful tenderer is liable to pay the GST.

Held that:- The Hon’ble Court set aside the impugned judgment and directed that where a contract is awarded by the appellants, a copy of the document, by which, the contract is awarded containing all material details shall be immediately forwarded to the concerned jurisdictional Officer. The appellants shall indicate that the tenderers will, in their bids, indicate the details of their Assessing Officers so that the appellants can effectively comply with this direction. The Union of India and the Railway Board shall ensure that this direction shall be complied with by all units.