S.V. Maruthi, Member (J)

1. The Department is the appellant before us. M/s. Visakhapatnam Steel Project for the purpose of setting up Medium Merchant and Structural Mill entered into an agreement with Skoda Export Foreign Trade Corporation, Czechoslovakia who have provided the basic design and engineering of the plant. M/s. Bharat Heavy Electricals Ltd. are the Indian suppliers Electrics with whom M/s. Visakhapatnam Steel Project entered into an agreement to carry out design and engineering, manufacturing and commissioning of the said plant. M/s. Bharat Heavy Electricals Ltd., since they do not have the technical know-how, agreed for carrying out design and engineering, manufacturing and commissioning of the said plant through M/s. Siemens AG of Federal Republic of Germany who is hereafter called as foreign major supplier electrics. Schedule II of the agreement provides for the Payments Schedule. It is divided into two parts. The first part consists of Terms of Work and Payments to be made in respect of the Indigenous Electrical Equipments and Services to the Indian Supplier viz. Bharat Heavy Electricals Ltd. (B.H.E.L.). This part provides for various items of work to be carrie