Order Date – 16 August 2022

Facts – 

• The respondents, Bharat Forge Ltd, was one of the tenderers in the e-tenders which were invited for procurement of turbo wheel impeller balance assembly 2BLW Part No. 16080385.
• It was contended that the tabulated statement of all the financial bids, would show that some entities had quoted their payment of GST at a rate of 5% on the base rate. The Appellant had quoted its GST rate as 18% according to the clarifications by the GST Council. 
• This has distorted the tendering process.
• The further case of the writ petitioner is that, neither the Notice Inviting Tender nor the bid documents, mention the relevant HSN Code applicable to the product.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether the classification of the HSN 37 Code is integral to the tendering process?

Order – 

• The Supreme Court observed that the purport of the Railway Board is that it is the responsibility of the bidder to quote the correct HSN Number and the corresponding GST rate. The State is not burdened with the liability to pay the tax. The liability to pay tax, in the case before us, is squarely on the supplier.
• Further, they found that the supplier of the goods and services, i.e., the successful tenderer is, indeed, liable to pay the GST by filing returns and carrying out self-assessment. There is also no dispute that it is the Officer, dealing with the supplier, who would have jurisdiction in the matter. 
• In the said circumstances, in order to ensure that the successful tenderer pays the tax due and to further ensure that, by not correctly quoting the GST rate, there is no tax evasion, they directed that, in all cases, where a contract is awarded by the appellants, a copy of the document, by which, the contract is awarded containing all material details shall be immediately forwarded to the concerned jurisdictional Officer. It is accordingly ordered. 
• Therefore, the appellants shall indicate that the tenderers will, in their bids, indicate the details of their Assessing Officers so that the appellants can effectively comply with this direction. The Union of India and the Railway Board shall ensure that this direction shall be complied with by all units.
• The appeal is allowed, impugned judgment is set aside.