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Ed amount claimed from invoice as pac is issued

Querist : Anonymous (Querist) 26 November 2011 This query is : Resolved 
We are a EPC contractor for construction of mega power project.As per our contract for supply of onshore materials, the price of our contract is inclusive of all taxes.(a)The Contract Price includes all taxes and duties (including variations thereof) applicable to the transactions between the Supplier and the Sub-Suppliers for the purchase of raw materials, components, assemblies finished products etc. i.e. bought out items/ components/ equipment of the Supplier for this project and there shall be no liability to the Purchaser on this account. (b)The Supplier should note that statutory deduction towards withholding tax, if any, as applicable, shall be made and necessary withholding tax certificate shall be issued by the Purchaser. If any other withholding tax is brought into effect by a Competent Authority during the period of the Contract then the same shall be deducted at source as per the prevailing rules and necessary certificate/s to that effect shall be issued by the Purchaser.(c)13.6 In the event the Purchaser claims no taxable event based on current legislations governing the power plants catering to either 100% Export Oriented Units/Special Economic Zone/Mega project status, the Purchaser shall take steps to intimate the same to the Supplier under the Contract by furnishing necessary documentary evidence to such an effect and the Supplier shall thereafter not incur any further tax liability on such portion (s) of the supplies that are to be covered during such period until the expiry of the Contract. Any tax liability if incurred consequent to the intimation by the Purchaser shall be to the account of the Supplier.
As the project is mega power project (PLEASE SEE PARAGRAPH 4.1.3 OF THE POLICY AND PARAGRAPH 8.2.4 OF THIS HANDBOOK), the project will get exemption on excise duty based on PAC(project authority certificate). Now we have procured some materials from manufacturer based on PAC without ED. We have also invoiced to the owner based on our agreed rate.
Now my question is can the owner company issue a debit note for back claim of ED amount + CST on ED amount from our invoice amount? your early reply will be highly appreciated.
ajay sethi (Expert) 26 November 2011
isnce you are an EPC contractor of a major power project you can easily afford legal fees. consult a local lawyer
Querist : Anonymous (Querist) 26 November 2011
Thanx for your expertize
Devajyoti Barman (Expert) 26 November 2011
Yes do as advised.
Raj Kumar Makkad (Expert) 26 November 2011
This platform is not meant for professional or business purpose. No replies for such giant business house. Engage specifically an expert lawyer or CA for this purpose.
Rajeev Kumar (Expert) 27 November 2011
Agree with ajay
Raj Kumar Makkad (Expert) 27 November 2011
Rajeev! Can you tel me what special advice has been given by Ajay.
Sailesh Kumar Shah (Expert) 01 December 2011
I also wish to know same.


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