TMI Blog2020 (2) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... , to contend that the only currency acceptable by the State towards deposit of tax being Indian currency, ONGC had no option but to deposit the tax amount by converting US Dollars to Indian currency at the prevailing rates and thus ONGC had no role in the collection and deposit of the tax is not correct. The question of law posed in the present petition, to be no longer res integra. In FORASOL VERSUS OIL NATURAL GAS COMMISSION (ONGC) [ 1983 (10) TMI 234 - SUPREME COURT] the Apex Court, under similar circumstances, directed the very same respondent i.e. ONGC to refund the amount in terms of currency agreed upon by the parties. The petitioner shall be entitled to take credit of the amount in terms of Memorandum dated 16th June, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees. [4] Here only it be observed that at one stage this Court had impressed upon the parties for amicable settlement, to which the petitioner was ready and willing but their proposal was not acceptable to respondent ONGC. In fact on 12th September, 2019, we had recorded that petitioner was ready to settle the matter by receiving an additional amount of ₹ 45,00,000/- (Rupees forty five lakhs) on lump sum basis. Today, Ms. Paramita Dhar, learned counsel for the respondent-ONGC states that the same is not acceptable to her clients. [5] On 28th June, 2013, respondent ONGC entered into an agreement with the petitioner company for hiring 01 set of MWDSDMM tool with Directional Driller and MWD Engineer for Tripura Asset of ONGC. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The State is entitled to levy any sales tax or Value Added Tax on the transactions in question. Since the petition has been allowed, it is directed that the amount of tax, already deducted and received by the State shall be refunded to the petitioner along with statutory interest latest by 31st May, 2016. In case the amount is not refunded by that date then the State shall be liable to pay interest @ 12% per annum with effect from 1st March, 2016. [8] Such findings stand affirmed by the Apex Court in Civil Appeal No(s) 1499/2017 arising out of SLP (C) No.1106/2016 titled as The State of Tripura versus M/S. IOT Infrastructure Energy Services Limited Another with the dismissal of the appeal preferred by the State vide order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny, was based on the Instruction bearing No.F.160515780883/Ch- V/2005/11834-36 dated 28-11-2008 issued by the State. [11] Orally it stands submitted on behalf of the State that since the amount deposited by ONGC towards statutory deduction was in Indian currency and that State has taken action for refund thereof, nothing else is required to be done on its part, thus the dispute is primarily between petitioner and ONGC. [12] It is nobody‟s case that the State had directed ONGC to mandatorily carry out deductions under the TVAT Act. Such deductions were carried out by ONGC of its own interpretation of the statute. It could have released the amount to the petitioner. It could have sought clarification from the experts /authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we hold that the learned Single Judge rightly took the date of the decree as the date of conversion. In his order on the said execution application he has, however, given a direction that ONGC could satisfy the judgment debt by making payment in French francs or if they so preferred by paying the equivalent sum in rupees at the rate of exchange prevailing on the date of the decree. He was in error in not qualifying this direction by making the option given to ONGC to make payment in French francs subject to the permission of the concerned authorities under the Foreign Exchange Regulation Act, 1973. To this Extent, the order passed by the learned Single Judge requires to be modified. [16] The principle stands reiterated in Meenakshi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (Annexure-7), dated 16th June, 2017 was issued pursuant to the direction rendered by this Court in Newsco International Energy Services (supra) and as such, the said order cannot be quashed. But that would not mean that the petitioner is not entitled for refund of the amount in terms of the currency agreed upon by the parties to the agreement. As such, petition is disposed of in the following terms: (i) The petitioner shall be entitled to take credit of the amount in terms of Memorandum dated 16th June, 2017 (Annexure-7). (ii) The difference in the exchange rate in terms of fluctuation in the Dollar vis-a-vis Indian Rupee, shall however be made good by ONGC. This also has to be in US Dollars, and the rate prevalent as on the date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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