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Report No. 30

4. Contract in Khosla's case.- Clause 17(L) of the Contract provided:-

"The contractor (assessee) is entirely responsible for the execution of the contract in all respects in accordance with the terms and conditions as specified in the A/T (Acceptance of Tender) and the Schedule annexed thereto.

Any approval which the Inspector may have given in respect of the stores, materials or other particulars and the work or workmanship involved in the contract (whether with or without test carried out by the contractor's Inspector) shall not bind the purchaser (Director-General of Supplies and Disposals and notwithstanding any approval or acceptance given by the Inspector it shall be lawful for the Consignee (Southern Railway) on behalf of the purchaser to reject the stores on arrival at the destination (Perambur, Golden Rock Works and Mysore) if it is found that the stores supplied by the Contractor are not in conformity with the terms and conditions of the contract in all respects1."

1. These facts are stated in para. 1 of the judgment of the Supreme Court.



Section 5 of the Central Sales Tax Act, 1956 - Taxation by the States of Sales in the Course of Import Back




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