Case Law Details
Spectrum Power Generation Limited Vs Gail (India) Limited (Delhi High Court)
Delhi High Court held that the issue relating to passing on the liability or reimbursement thereof does not relate to the taxing power of the state or any action taken or an order made in exercise thereof. The contention that the dispute raised is non-arbitrable on the aforesaid ground is thus negative.
Facts-
The petitioner seeks to invoke the jurisdiction of the Court conferred by Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of a Sole Arbitrator in light of the disputes which have arisen between the parties and in terms of the provisions made in the Gas Sale Agreement which came to be executed between the parties on 18 December 2015.
The petitioner asserts that from the time of commencement of the contract for supply of natural gas, the respondent raised invoices billing it under the heads of (i) gas price, (ii) marketing margin, (iii) transmission charges, (iv) Goods and Service Tax costs @ 18% on the aforesaid and (v) Value Added Tax on the sum total of gas price. The aforesaid invoices were acknowledged and payments made by the petitioner accordingly.
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