JUDGMENT

1. The petitioner company is engaged in the business of manufacturing cement and for this purpose had entered into an agreement with the respondent No. 3/North Eastern Coalfields for purchase of coal. In furtherance of this purpose, the parties have entered into a Coal Supply Agreement (CSA) (also referred to as Fuel Supply Agreement in this petition, which term may be used interchangeably) on 18.07.2008 under the terms and conditions set therein.

2. The petitioner on being asked by the respondent No. 4 to furnish a bank guarantee for an amount equal to 10% of the notified based price of the annual coal requirement for issuance of Letter of Assurance (LOA) has furnished a bank guarantee for an amount of Rs.1,12,00,000/- (Rupees one crore twelve lakhs) only in favour of respondent No. 3 vide guarantee dated 22.05.2008 issued by the State Bank of India, Commercial Branch, Guwahati. Accordingly, the Letter of Assurance (LOA) was issued on 30.05.2008.

3. Vide letter dated 04.11.2008 the respondent No. 4 informed the petitioner that the supply of coal for delivery could not be fulfilled as a result of which import from outside is required. For such an operation, the service charge