JUDGEMENT
P.KALAIYARASAN,J. -
(1.)This Original Side Appeal is directed against the order of the learned single Judge, dated 20.03.2015 in O.P.No.427 of 2011, dismissing the O.P, by confirming the Arbitration Award.
(2.)The brief facts of the case are as follows :
(i) The claimant is a registered partnership firm of Civil Engineers and contractors and as owner of tankers, it is also engaged in the activity of hiring of tankers for transport of effluent water, crude oil etc. Oil Natural Gas Corporation Ltd., called for tender for transportation of crude oil by road by tankers from various locations. The claimant participated in the tender and contract was awarded to it. Both the claimant and ONGC entered into contract on 09.08.2006 for transportation of crude oil for a period of two years from 17.07.2006. In November 2006, ONGC had recovered a sum of Rs.3,62,255/- towards service tax from out of the bills of the claimant company. On 11.12.2006, the claimant company objected to such recovery by addressing a letter stating that they are only transporters of goods and there is also no instruction from the tax authority to pay service tax.
(ii) The claimant had executed an indemnity bond on 22.01.2007 irrevocably agreeing to reimburse service tax amount to ONGC, if ONGC had paid the amount on demand by appropriate authority and ONGC released the amount. In response to a letter from the Superintendent of Central Excise, ONGC addressed the Superintendent informing that as per contract, the rates were inclusive of all taxes including service tax and the payment of service tax will have to be taken with the claimant. ONGC deducted a sum of Rs.29,29,397/- from out of the bills of the claimant towards service tax liability for the contract period.
(iii) The claimant informed ONGC on 30.07.2008 that they are not Goods Transport Agency (GTA) but owner of tankers and sought for refund of the amounts. The contract came to an end in August 2008. The claimant issued notice appointing an Arbitrator. ONGC sent a reply stating that the transportation of crude oil by road through tankers falls in Goods Transport Agency (GTA) services and so amenable to service tax. The claimant sent rejoinder.
(3.)The Arbitral Tribunal after hearing both sides passed an Award directing ONGC to pay a sum of 29,29,397/- together with interest at the rate of 12% p.a. from the date of award. Challenging the Arbitral Award, ONGC filed the O.P and the learned single Judge, dismissed the O.P. Aggrieved by the order of the learned single Judge, ONGC has preferred this Appeal.
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