TMI Blog2016 (3) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... ds the alleged over-payments for the supplies of drugs and medicines under the old contract - Held that:- pricing clause in the old contract refers to the liability of paying all taxes being on the supplier. It is clarified that the CGHS will pay the labelled MRP minus local taxes less as reduced by tendered discount and such quoted offer would remain constant during the entire duration of the contract. The pricing clause provides for three parameters (i) the MRP, (ii) the local taxes which would be the responsibility of the petitioner and (iii) the discount offered by the tenderer. It provides that the CGHS would pay the labelled MRP minus local taxes less the discount offered. Such formula would remain constant during the entire period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the supplier after discount has been rationalised and simplified in the new pricing clause. Therefore, as long as in the earlier bills raised by the petitioner and cleared and paid by the CGHS, the formula of MRP minus the petitioner’s VAT liability less the offered discount on MRP is applied and no error or irregularity is seen. The interpretation now adopted by the CGHS in the formula reproduced hereinabove would not flow from the pricing policy. Also the recoveries raised by the respondents for the past bills already paid are quashed. - Decided in favour of petitioner - SPECIAL CIVIL APPLICATION NO. 18050, 18051, 18052, 18053 of 2015 - - - Dated:- 11-3-2016 - MR.AKIL KURESHI AND MR. Z.K.SAIYED FOR THE PETITIONER : MR SATYAM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r gives a breakup of alleged overpayments during a certain period. According to the CGHS, such event of over-payment occurred on account of misinterpretation and consequential miscalculation of the petitioner s entitlement of reimbursements for the medicines and drugs supplied under the said contract. The entire issue revolves around the correct interpretation of pricing clause contained in the tender notice. We would refer to this pricing clause at a slightly later stage. At this stage, we may briefly record that the dispute between the petitioner and the CGHS is whether while calculating the net payable by the CGHS to the petitioner entire Value Added Tax (VAT for short) payable on the product in question should be reduced from the MRP an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etter dtd. 07.12.2013 of ALC (Copy enclosed for reference) on the above cited subject, the undersigned is directed to convey that following model of calculation for payment of CGHS bills to ALC has been approved by the competent authority :- Agreed discount = 11.84% and VAT is 5% MRP = ₹ 1000.00 Less (VAT 5%) (-) 50.00 Rs.950.00 Less discount (11.84% on MRP) Rs.118.40 Rs.831.60 only. This is payable amount to ALC. In other words, the dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to bear all taxes would be on the supplier and the CGHS would not be burdened by any of the taxes. The supplier would offer a uniform discount which will operate throughout the period of the contract. It is in this context the clause in the earlier portion refers to the bidder quoting uniform discount on retail price in the percentage terms. It is later on stated that the liability to pay Taxes / VAT/ Levy / Cess/ Octroi etc. would be that of the supplier. In this context, the final formula which the pricing clause provides is that the CGHS will pay the labelled MRP minus local taxes less tendered discount. Thus, the clear intention was to invite offers in which the tenderer would specify the percentage of discount on his margin. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le formula of MRP (inclusive of taxes) less discount to be applied. This is not to suggest that the new clause would govern the interpretation of the old clause. This is only to suggest that the formula that works out the net payable by the CGHS to the supplier after discount has been rationalised and simplified in the new pricing clause. 12. Under the circumstances, as long as in the earlier bills raised by the petitioner and cleared and paid by the CGHS, the formula of MRP minus the petitioner s VAT liability less the offered discount on MRP is applied, we see no error or irregularity. The interpretation now adopted by the CGHS in the formula reproduced hereinabove would not flow from the pricing policy. 13. Accordingly, all the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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