TMI Blog2021 (9) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... ased purely upon the terms specified in Ext. P1. De hors what happened before or after, the terms in Ext. P1 are required to be abided with. The bidders cannot vary or detract from the terms specified in that document. Viewed in the above perspective, irrespective of the Government order issued as G.O. (P) No. 2/2018/PWD dated 27.01.2018, if the 2nd respondent proceeded with the tender in question, incorporating specific terms that the bids must quote rates 'except' GST in Clause 3.3.3 as extracted earlier, it cannot be gainsaid later, by the employer to the contract, that the bids ought to have quoted rates including GST. It needs no elaboration to conclude that the said terms except goods and service tax being specific to the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Petition allowed. - Hon'ble Judges Bechu Kurian Thomas, J. For the Appellant : Santhosh Mathew, Arun Thomas, Jennis Stephen, Vijay V. Paul, Karthika Maria, Anil Depastian Pulickel and Abi Benny Areeckal, Advs. For the Respondents : G. Baijuraj, Adv. JUDGMENT Bechu Kurian Thomas, J. 1. Respondents 2 and 3 invited tender for a work titled NABARD RIDF XXII Infrastructural works in Kurinjikkal-Construction of Bridge across Puzhakkalthodu in Kurinjikkal Puthurkkara in Thrissur District for an estimated cost of Rs. 4,11,42,054/-. Petitioner bid for the work and his tender was accepted for an amount of Rs. 3,92,70,000/-. 2. Ext. P1 was the Notice Inviting Tender (for short 'NIT') for the said wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of GST, KLDC is a Government owned company which adopts rules and regulations of government, especially PWD orders and circulars from time to time. The estimate for the works before 15.03.2019 is prepared based on the cost indices as per circular in reference cited (1), which is inclusive of GST provision and hence, the rate of each item includes GST component also. As per the reference (2) cited, the base estimate is prepared based on rates devoid of GST with effect from 15.03.2019. Hence for tenders invited based on estimate prepared after 15.03.2019, the contractor can quote rate without taxes, and taxes will be given extra. Thus, for the agreements executed prior to the circular date in reference (3), the contractors are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly to the tax system and also that the Government does not provide goods and service tax beyond the contract amount. According to the 3rd respondent, the 2nd respondent is not entitled to pay the GST amount to the contractor in view of the situation mentioned as per instruction No. 25 issued by the Government in the aforesaid circular. It was asserted that Ext. P9 order was issued in accordance with law, not arbitrary and was not susceptible to challenge. 6. I have heard Adv. Karthika Maria on behalf of the petitioner, the learned Government Pleader Adv. Sabeena P. Ismail on behalf of the 1st respondent and Adv. Baijuraj G. on behalf of respondents 2 and 3. 7. The notice inviting tender produced as Ext. P1 is specific to the work in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified that the total amount must be given without taxes. A perusal of the above referred BoQ makes it obvious that when the template was created for the BoQ, respondents 2 and 3 had in mind the terms stipulated in Ext. P1. 9. A bill of quantities itemises all work to enable a contractor to price the work for which he is bidding. It is issued to tenderers to enable them to prepare the price for carrying out the work. The BoQ assists tenderers in the calculation of costs for their tender. It also enables all bidding contractors to price the same quantities and provides a level playing field for all bidders. 10. In other words, even the BoQ did not contemplate the goods and service tax to be included as part of the bid to be submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It cannot bind third parties. The estimate prepared by the employer is only a guiding document to the employer. It cannot be held to be binding upon the bidders unless the estimate was made part of the notice inviting tenders. 13. Viewed in the above perceptive, it is limpid that, since the terms except goods and service tax was specified in Clause 3.3.3 of Ext. P1, the petitioner could only have quoted the bid amount, without including the GST. 14. Yet another contention raised by the respondents relate to the rates quoted by other contractors as inclusive of GST. The answer to this contention need not detain this Court for long as the same is also answered by the Division Bench of this Court, in the case of C.A. George (supra) whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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