Page 76 - GSTL_23rd July 2020_Vol 38_Part 4

442 GST LAW TIMES [ Vol. 38
“Dear Sir,
With reference to inviting offer in the subject matter and your bid
submission in the matter, your tender has been accepted on behalf of the
competent authority in SDMC at your negotiated/finally offered tender
rates [contract unit rate (fee)],which is described as here below :
Finally offered rate = Rs. 1934/- (Rupees One Thousand Nine Hundred
and Thirty Four) (Per day Per Vehicle)
For 08 Hours of working.
The rates includes registration charges, parking charges, washing charges,
insurance, service tax, Labour Cess, accident claims (if any), cost of fuel, lu-
bricating oil, water. etc., Challan, salary to driver as well as labour, imple-
mentation of all labour relates law (in respect of driver & labours) and all
repairs & maintenance etc.
Vehicles will be hired for a maximum period of 5 years from the date
of issue of the Work Order, on daily basis or as required by the department
and the escalation on the awarded rate due to increase/decrease in fuel and
minimum wages, will be paid as follows by considering the rates of CNG @
30/- per kg; petrol rate @ 63.70/- per ltr and minimum wages rate @ 297/-
per day (Rate of one beldar comes to Rs. 238/- & Rs. 297/- as on date for
general purpose & foul condition respectively)
(i) Rate applicable, in case of increase/decrease in the rate of fuel etc. for
every Rs.1 increase/decrease in the rate as on above, the per day rate
would be increased/decreased by : -
(a) CNG @ 5.00/- (per day)
(b) Petrol @ 1.50/- (per day)
(ii) Rate applicable in case of increase/decrease in the rate of labour and
driver as on above for every Rs. 1 i.e. minimum wages notified by the
Govt. the increase/decrease in per day rate @ 2.50/- (per day).
The above rates are inclusive of all taxes and levies.
(iii) For extra working Km beyond 30 Km per day Rs. 6/- will be paid ex-
tra. Proper record with verification for the same shall be maintained.
……”
The above terms also form part of the Agreement between the parties dated
27-8-2012.
14. It is clear from the perusal of the above that the agreed rate was of
Rs. 1934/- per day per vehicle for eight hours of working. The rate was all inclu-
sive including service tax, labour cess, accident claims etc. Escalation on the
awarded rate was allowed in case of increase/decrease in fuel and minimum
wages as stipulated only.
15. The important thing that follows is that the aforesaid rate is all in-
clusive. It is subject to increase/decrease only in case of variation of fuel rates
and minimum wages. There is no stipulation that in case service tax, insurance,
registration charges, parking charges, etc. are varied, the charges payable will be
increased/decreased. It is manifest that there is no stipulation in the agreement
that the charges are in any manner linked with the service tax. In fact, there is
nothing in the contract that even specifies what rate of the service tax is allegedly
payable. The respondent is needlessly adding words to the agreement to try and
justify the deductions for alleged non-payment of service tax.
16. I may look at the Audit Objection which is the basis of the deduc-
tion from the agreed consideration. The said communication dated 20-3-2015
states that the respondent has been passing bills of the petitioner though service
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