Sanjay Gandhi Post Graduate Institute of Medical Sciences , Lko. Thru. Director v. M/S S.C. Agarwal Purana Qila , Lko. Thru. Proprietor Mr. S.C. Agarwal

Allahabad HC18 Apr 2024ARPL/10/2024

Case brief

AI extract

What is this about?

This appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenges an arbitral award levying service tax. The appellant argues the tax was incorrectly levied as the agreement rates are inclusive. The court admitted the appeal, stayed recovery pending hearing, and listed the case for two months after summoning the arbitration record.

What did the court decide?

Recovery against the appellant on the basis of the award shall remain stayed till the next date of listing.

Sanjay Gandhi Post Graduate Institute of Medical Sciences… — Arbitration | Allahabad HC (2024)

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Court No. - 2

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Case :- APPEAL UNDER SECTION 37 OF ARBITRATION AND CONCILIATION ACT 1996 No. - 10 of 2024

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Appellant :- Sanjay Gandhi Post Graduate Institute Of Medical Sciences , Lko. Thru. Director Respondent :- M/S S.C. Agarwal Purana Qila , Lko. Thru. Proprietor Mr. S.C. Agarwal Counsel for Appellant :- Pritish Kumar Counsel for Respondent :- Apurva Saxena,Ritesh Goel

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Hon'ble Vivek Chaudhary,J. Hon'ble Om Prakash Shukla,J.

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Heard Sri Pritish Kumar, learned counsel for the appellant and Sri Agendra Sinha, who along with Sri Apurva Saxena and Sri Ritesh Goel, has filed Power today on behalf of respondent, which is taken on record.

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Petitioner has approached this Court challenging the award dated 9.1.2024 passed by the Commercial Court No.1, Lucknow in Arbitration Case no.246 of 2018 (SGPGI vs. M/s. S.C. Agarwal).

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Learned counsel for the appellant submits that Clause 3 of the agreement while providing the rates also specifically provides that the rates are inclusive of all statutory and other Government levies, if any. He thus, submits that the service tax liability fixed upon the appellant in the award is incorrectly levied. He further submits that all the judgments relied upon in the award are relating to cases where agreement was silent with regard to liability to pay the tax and in the present case, the same is specifically stated in the agreement, therefore, the judgments relied upon in the award are not applicable to the facts of the present case.

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Learned counsel for the respondent submits that there is no illegality in the award.

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A case for consideration is made out.

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Admit.

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Let arbitration record be summoned from the Commercial Court concerned.

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List after two months.

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Till the next date of listing, recovery against the appellant on the basis of the award shall remain stayed.

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[Om Prakash Shukla,J.] [Vivek Chaudhary,J.]

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Order Date :- 15.3.2024 Sachin

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Digitally signed by :- SACHIN MEHROTRA High Court of Judicature at Allahabad, Lucknow Bench

Sanjay Gandhi Post Graduate Institute of Medical Sciences , Lko. Thru. Director v. M/S S.C. Agarwal Purana Qila , Lko. Thru. Proprietor Mr. S.C. Agarwal

Case brief

What is this about?

What did the court decide?

Sanjay Gandhi Post Graduate Institute of Medical Sciences , Lko. Thru. Director v. M/S S.C. Agarwal Purana Qila , Lko. Thru. Proprietor Mr. S.C. Agarwal

Case brief

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What did the court decide?

What the court decided

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Issues for consideration

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