R.D. Dhanuka, J. - (1.) BY this petition filed under section 34 of the Arbitration and Conciliation Act, 1996, the petitioner has impugned the arbitral award 28th April, 2011 passed by the learned arbitrator rejecting part of the claims made by the petitioner towards reimbursement of the service tax w.e.f. 16th June, 2005 with interest. Some of the relevant facts for the purpose of deciding this petition are as under : -
(2.) THE petitioner herein was the original claimant whereas the respondent herein was the original respondent in the arbitral proceedings. Sometimes in the month of January 2005 M/s. Engineers India Ltd. who had been appointed as Project Management Consultant for implementation of the project of the respondent, invited sealed bids for laying of pipeline and associated works under Single Stage II Envelope system from competent agencies with sound technical and financial capabilities and meeting the qualification criteria. On 28th February, 2005 in the Finance Bill 2005, the Finance Minister announced that the service tax would be payable on the "construction of a new building or a civil structure or a part thereof" and "construction of pipeline or conduit" from such date as the Central Government may, by notification in the Official Gazette, appoint. The said Finance Act 2005 came into force on 13th May, 2005.
(3.) THE respondent introduced the Commercial Addendum No. 1 in the tender document inserting the words "Service Tax" after the words "Excise Duty" in the Clause No. 14.5 of the Instructions to Bidder as well as Clause No. 22.1 of the Special Conditions of Contract. The last date for submission of the bids by the bidders was 7th June, 2005 and the bids were to be opened on the same day.;