Page 240 - GSTL_21st May 2020_Vol 36_Part 3

486 GST LAW TIMES [ Vol. 36
two contracts in relation to whole contract which is divided in six contracts and
their interrelation with each other.
In the para 2.2 of the Fifth contract i.e. onshore service contract it is men-
tioned that,
Notwithstanding the award of work under six separate Contracts in the
aforesaid manner, the JV shall be overall responsible to ensure the execu-
tion of all the six Contracts to achieve successful completion and Taking
Over of the works covered under the package and Operational Acceptance
by the Employer as per the requirements stipulated in the Bidding Docu-
ments. It is expressly understood and agreed by the JV that any default or
breach by the JV partners under the ‘First Contract’ and/or ‘Second Con-
tract and/or the ‘Fourth Contract’ and/or the ‘Sixth Contract and/or
breach by the Associate of JV-SIEMENS-l under the ‘Third Contract shall
automatically be deemed as a default or breach of this ‘Fifth Contract also
and vice versa, and any such default or breach or occurrence giving us a
right to terminate the First Contract’ and/or ‘Second Contract and/or
‘Third Contract and/or ‘Fourth Contract and/or the ‘Sixth Contract’, either
in full or in part, and/or recover damages under those contract(s), shall
give us an absolute right to terminate this Contract at your risk, cost and re-
sponsibility, either in full or in part and/or recover damages under this
Fifth Contract as well.
However, such default or breach or occurrence in the ‘First Contract’
and/or ‘Second Contract’ and/or ‘Third Contract’ and/or ‘Fourth Contract’
and/or ‘Sixth Contracts’, shall not automatically relieve you any of your
obligations under this ‘Fifth Contract’. It is also expressly understood and
agreed by you that the equipment/materials supplied by you under the
‘Third Contract’, by SIEMENS AG on behalf of JV under the ‘First Con-
tract’, by SUMITOMO on behalf of JV under the ‘Second Contract and
Fourth Contract’, as per identified scope of works in respective Contracts,
when erected, installed and commissioned by you under this ‘Fifth Con-
tract’/by SUMITOMO under the ‘Sixth Contract’ shall give satisfactory per-
formance in accordance with the provisions of the Contract(s).
Regarding pricing of the contract, in clause 3.2 it is mentioned that,
“Notwithstanding the break-up of contract price, the contract shall at
all times be construed as a single source responsibility contract and any
breach in any part of the contract shall be treated as breach of the entire
contract.”
Further in para 6.0 time period assigned for completion of contract is for whole
contract of supply goods and services along with commissioning of the project
and no separate time period is mentioned for supply of goods and supply of ser-
vices.
38. It is seen that these paras are included in both of these contracts i.e.
Third and Fifth contracts of supply of goods and supply of services resp. The
contracts are awarded to the JV of SIEMENS AG and SUMITOMO in which the
appellant is associate of JV.
39. We find that the Third Contract includes onshore ex-works supply
of all equipment’s and materials. The Fifth contract includes onshore services i.e.
all other activities like transportation, insurance and all incidental services, in-
stallation along with civil work, training required to be performed for complete
execution of the VSC based HVDC Terminal and DC XLPE Cable package. It is
GST LAW TIMES  21st May 2020  240