IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE VIJAY KUMAR SHUKLA ON THE 25th OF NOVEMBER, 2022 Arbitration Case No. 18/2018 BETWEEN:-

M/S NARBADA ALLOYS (INDIA) PVT. LTD. A PRIVATE LIMITED COMPANY INCORPORATED AND REGISTERED THR. ITS PRESENT DIRECTOR SHRI ANIL GOEL S/O SHRI H.R. GOEL A/A 58 ITS OFFICE AT 2ND FLOOR CARAVS BUILDING 15 CIVIL LINES JABALPUR, THR. R/O HOUSE NO.1 NARBADA CLUB CANTONMENT JABALPUR (MADHYA PRADESH)

----APPLICANT (BY SHRI BRIAN D’SILVA – SENIOR ADVOCATE WITH SHRI VRUSHAL BHIDE - ADVOCATE)

AND GENERAL MANAGER VEHICLE FACTORY JABALPUR (MADHYA PRADESH)

---NON-APPLICANT.

(BY SHRI GOPI CHOURASIA, ADVOCATE FOR THE NON-APPLICANT)

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This petition coming on for final hearing this day, the court passed the following:

(O R D E R)

The present petition is filed under Section 11 of Arbitration and Conciliation Act, 1996 (hereinafter referred in short as Act, 1996) for appointment of an arbitrator to resolve the dispute that has arisen between the parties.

2. The applicant is a private Company incorporated and registered under the provisions of Companies Act, 1956 and the non-applicant had invited the tender in respect of disposal of scrap steel in the year 1991. The applicant submitted its tender, which was accepted by the non-applicant. It is pleaded that in pursuant to the agreement between the parties, the Company have lifted 400 metric tonnes scrap material and the balance amount was refunded / adjusted to short closure of the contract. As per the terms and conditions stipulated in the tender the Excise Duty was not applicable and the self tax was exempted. It is submitted that after completion of the said work, the non-applicant issued “No Dues Certificate) dated 23/09/1992.

3. Non-applicant had notified another tender in respect of disposal of scrape steel in the year 1992. The applicant again applied for the said work and his tender was accepted. He had lifted full quantity of material/ scrapped (steel) steel within stipulated period as per terms and conditions of the contract. After completion of the said work, non-applicant issued “No Dues Certificate.” In the year 1993, non-applicant issued another notification inviting tender for disposal of scraped steel. The applicant submitted its tender for the scraped material of 600 Mt. Same was accepted by the non-applicant. As per the tender the documents, the lifting period for the said scrapped material was fixed from 08/07/1993 to 07/03/1994. It is submitted that at the time of acceptance of the said tender, the excise duty was not applicable and payment of State Taxes was exempted, but during the currency of the said work / during lifting of the said scraped material, a notification was made in the month of October, 1993 to impose the Central Excise Duty and also charge the same from the concerned. The non-applicant recovered excise duty from the applicant-Company amounting to Rs.2,35,000/- by invoking the Bank guarantee of Rs.2,67,000/-, which was deposited by the non- applicant towards security deposit. It is contended that the said excise duty was applicable or came into force from the date of modification, therefore, the non-applicant was not entitled to charge/recover excise duty in respect of past/previous contracts from the applicant/company. As per the letter of acceptance of tender dated 30.06.1993, applicant-company has completed all the work and the department issued “No Dues Certificate” and security was adjusted.

4. It is further pleaded that the non-applicant had notified for auction of scraped iron material in the year 1996 through broker. The open auction was held by the broker in Delhi and as per terms and conditions, MSTC was entitled to commission of 2% of the total amount amount of sale value. The applicant Company had also participated in the said auction and its bid was accepted by the non-applicant with respect of 500 Mt. of scrapped material