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2020 ] IN RE : HALLIBURTON OFFSHORE SERVICES INC. (OIL INDIA) 153
tory Equipment (clause-15), Logistics (clause-16)’. It is observed that though the con-
tract is for ‘Mud engineering and Drilling waste management services’, the scope
of work or the consideration for such services is not based on quantum or vol-
ume of the service. The scope of work under the contract encompasses the events
viz. supply of technical personnel, technical equipment (on rental basis) and
supply of additives/chemicals/consumables. Consideration receivable by the
applicant is with reference to provision of such each event (reference to Section-III
of the Contract). Thus, all these components are not supplied or provided as a package
at a single price.
9.9 Reference is invited to detailed scope of supply of Mud Chemicals
and Additives together with their logistics is provided under clause 16.2 and
16.1.2 to 16.1.5 of Section-II of the Contract. Reference is also drawn to Clause
8.10 of Section-I of the Contract with regard to Customs duty on list of items. As
stated hereinabove, the scope of work consists of activities of mobilization, utili-
zation and demobilization of technical personnel, technical equipment and chem-
icals/additives/consumables. Reference is invited to clause 2.2 and the note
there-under, as per which “mobilization of consumable only on staggered basis to each
of the three wells on mutually agreed delivery schedule; all rental tolls/equipment/acce-
ssories/personnel shall be mobilized to the well site as and when instructed by the Com-
pany”. In terms of clause 5.2 of the Contract, “upon company’s request, Contractor,
entirely at its own expense, shall remove immediately; any personnel of the Contractor
determined by the Company to be unsuitable and shall promptly replace such personnel
with personnel acceptable to the Company.”. Further, clause-8.10 of the Contract
speaks about procurement of items (additives/chemicals/consumables etc.) i.e.
import at concessional (nil) customs duty, issuance of Recommendatory Letter
(RL) by OIL, obtaining of necessary EC from DGH by the Applicant etc. Under
Clause 15.0 of the Contract, the Applicant may sub-contract the petty support
services subject to Company’s approval. It is also observed that consideration in
the form of ‘mobilization charges’ would be paid by the Company for each of the
event (individually or separately) at the rates and schedule as specified in Sec-
tion-III of the Contract. Same is the case with regard to demobilization of per-
sonnel, technical equipment and additives/chemicals/consumables, etc. All these
facts lead to a conclusion that all these elements, technical personnel/equipment and
goods are separately available and can be procured independently.
9.10 In terms of Clause 11.4 of the Scope of the Work under Section-II
of the Contract, ‘the Applicant will remove and replace any personnel in the Contract if
deemed not suitable or experienced enough to carry out the work in a reasonable time
without effecting company’s operation at their own expenses provided that OIL requests
so in writing’. Under this clause, it appears that a choice is available to the service
recipient for replacement/removal of technical personnel (a part of their scope of
work of the Contract) independently. Vide clause 13.1 of Scope of the Work un-
der Section-II of the Applicant shall ensure sufficient quantity of materials and
chemicals are available at the rig site and at the base and the applicant is also
under obligation for providing of actual delivery verification.
9.11 Clause-16.2 of Section-II of the Contract refers to supply of mud
chemicals and Additives - which includes submission of specification of all the
offered chemicals, supply of complete line of mud chemicals and additives,
maintenance of adequate stocks of these items, furnishing of test reports to OIL,
payment on actual consumption basis etc. As per Clause 16.2.5, the recipient i.e.,
OIL reserves the right to terminate the contract if the chemicals and additives are
GST LAW TIMES  13th August 2020  67