VALMIKI J. MEHTA, J.

1. By this petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’), petitioner herein; the respondent in the arbitration proceedings; impugns the Award of the Arbitrator dated 23.7.2003 by which the respondent herein; the claimant in the arbitration proceedings; was held entitled to an amount of Rs.27,30,600/- alongwith interest at 9% per annum simple on account of reimbursement of tax paid by the respondent under the Maharashtra Sales Tax on the Transfer of Property in Goods (= cement) involved in the Execution of Works Contracts (Re-enacted) Act, 1989 (hereinafter referred to as ‘the Maharashtra Act, 1989’), inasmuch as such tax (hereinafter ‘works contract tax/sales tax’) was to be paid by the petitioner as per Clause 12 of the contract but the petitioner had failed to pay the same.

2. The facts of the case are that petitioner engaged the respondent-contractor for construction of 554 dwelling units at Kharghar, Navi Mumbai (Maharashtra). Parties entered into an Agreement dated 29.3.1996 in this regard. The subject dispute arose under this contract.

3. Arbitrator by the impugned Award has held th