Page 225 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SIEMENS LTD. 471
HVDC Cable and some of its associated items) to be supplied
from abroad, loading, inland transportation and insurance for
delivery at site, insurance, unloading, storage and handling
at site, installation including civil works, testing and commis-
sioning including Performance Testing in respect of all Plant
and Equipment supplied.
(ii) That the contract is awarded for total Contract Price for the
entire scope of work under this Contract. It means, it is
awarded for single price which covers all activities as re-
quired for competition of the project.
(iii) That there is no break-up of the Contract Price, the Contract
shall, at all the times, be construed as a single source respon-
sibility Contract and any breach in any part of the Contract
shall be treated as a breach of the entire Contract.
(iv) That the Appellant is one of contract party in this JV to com-
plete the work in stipulated time who is supplying the goods
and services to complete the project undertaken. The Appel-
lant is also equally responsible to this contract to achieve the
target within time, otherwise it is breach of contract.
(v) That the First Contract including onshore Ex works supply of
all equipment and materials cannot be executed independent
of the Second Contract which is for the onshore supply of
services. It is further observed that there cannot be any ‘sup-
ply of goods’ without a place of supply. As the goods to be
supplied under the First Contract involves movement and/or
installation at the site, the place of supply shall be location of
the goods at the time when movement of goods terminates
for delivery to the recipient or moved to the site for assembly
or installation refer to Section 10(1)(a) and (d) of the IGST
Act, 2017. The First Contract however does not include the
provision and cost of such transportation and delivery.
Therefore, it does not amount to a contract for ‘supply of
goods’ unless tied up with the Second Contract. The First
Contract has ‘no leg’ unless supported by the Second Con-
tract.
(vi) That although awarded under two separate contract agree-
ments, clauses under both of them make it abundantly clear
that notwithstanding the break-up of Contract Price, the con-
tract shall, at all times, be construed as a single source re-
sponsibility and the Application shall remain responsibility
to ensure execution of both the contracts to achieve successful
competition. Any breach in any part of the First Contract
shall be treated as a breach of the Second Contract, and vice
versa.
(vii) That the two contracts are linked by a cross fall breach clause
deeming that any breach in either of the contracts is to be
considered to be a breach of the other contract as well. Thus,
it provides the recipient with an absolute right to either ter-
minate both the contract or claim damages accordingly. That

GST LAW TIMES  21st May 2020  225