Common use of Excise Duty Clause in Contracts

Excise Duty. 1. Where the excise duty is payable on advalorem basis, the Bidder should submit along with the tender, the relevant form and the Manufacturer’s price list showing the actual assessable value of the stores as approved by the Excise authorities. 2. Bidders should note that in case any refund of excise duty is granted to them by Excise authorities in respect of Stores supplied under the contract, they will pass on the credit to the Buyer immediately along with a certificate that the credit so passed on relates to the Excise Duty, originally paid for the stores supplied under the contract. In case of their failure to do so, within 10 days of the issue of the excise duty refund orders to them by the Excise Authorities the Buyer would be empowered to deduct a sum equivalent to the amount refunded by the Excise Authorities without any further reference to them from any of their outstanding bills against the contract or any other pending Government Contract and that no disputes on this account would be raised by them. 3. The Seller is also required to furnish to the Paying Authority the following certificates: (a) Certificate with each bill to the effect that no refund has been obtained in respect of the reimbursement of excise duty made to the Seller during three months immediately preceding the date of the claim covered by the relevant bill. (b) Certificate as to whether refunds have been obtained or applied for by them or not in the preceding financial year after the annual Audit of their accounts also indicating details of such refunds/applications, if any. (c) A certificate along with the final payment bills of the Seller to the effect whether or not they have any pending appeal/protest for refund or partial refund of excise duties already reimbursed to the Seller by the Government pending with the Excise authorities and if so, the nature, the amount involved, and the position of such appeals. (d) An undertaking to the effect that in case it is detected by the Government that any refund from Excise Authority was obtained by the Seller after obtaining reimbursement from the Paying Authority, and if the same is not immediately refunded by the Seller to the Paying Authority giving details and particulars of the transactions, Paying Authority will have full authority to recover such amounts from the Seller’s outstanding bills against that particular contract or any other pending Government contracts and that no dispute on this account would be raised by the Seller. 4. Unless otherwise specifically agreed to in terms of the contract, the Buyer shall not be liable for any claim on account of fresh imposition and/or increase of Excise Duty on raw materials and/or components used directly in the manufacture of the contracted stores taking place during the pendency of the contract.

Excise Duty. 1. Where If applicable will be paid at full rates prevailing during the excise duty scheduled delivery period subject to the production of the following certificates by the Manager/Senior Administrative officer of the firm :- i) Certified that the transaction on which the Central Excise Duty has been claimed has been/shall be included in the return submitted to the Central Excise Authorities and amount claim from the PSTCL has been/shall be paid to the Central Excise Authorities . ii) Certified that the Goods on which the Excise Duty has been charged have not been exempted under Central Excise Duty rules and that the Central Excise charges or these goods is not more than what is payable on advalorem basis, under the Bidder should submit along with the tender, the provisions of relevant form and the Manufacturer’s price list showing the actual assessable value Act of the stores as approved by the Excise authoritiesRules made there-under. 2. Bidders should note iii) Certified that in case any refund of excise duty is granted to them by Excise authorities in respect of Stores supplied under we shall indemnify the contract, they will pass on the credit to the Buyer immediately along with a certificate that the credit so passed on relates to the Excise Duty, originally paid for the stores supplied under the contract. In case of their failure to do so, within 10 days of the issue of the excise duty refund orders to them by the Excise Authorities the Buyer would be empowered to deduct a sum equivalent to the amount refunded by the Excise Authorities without any further reference to them from any of their outstanding bills against the contract or any other pending Government Contract and that no disputes on this account would be raised by them. 3. The Seller is also required to furnish to the Paying Authority the following certificates: (a) Certificate with each bill to the effect that no refund has been obtained in respect of the reimbursement of excise duty made to the Seller during three months immediately preceding the date of the claim covered by the relevant bill. (b) Certificate as to whether refunds have been obtained or applied for by them or not in the preceding financial year after the annual Audit of their accounts also indicating details of such refunds/applications, if any. (c) A certificate along with the final payment bills of the Seller to the effect whether or not they have any pending appeal/protest for refund or partial refund of excise duties already reimbursed to the Seller by the Government pending with the Excise authorities and if so, the nature, the amount involved, and the position of such appeals. (d) An undertaking to the effect that PSTCL in case it is detected by the Government found at a later stage that any refund from Excise Authority was obtained by the Seller after obtaining reimbursement from the Paying Authority, and if the same is not immediately refunded by the Seller to the Paying Authority giving details and particulars of the transactions, Paying Authority will have full authority to recover such amounts from the Seller’s outstanding bills against that particular contract wrong or any other pending Government contracts and that no dispute on this account would be raised by the Seller. 4. Unless otherwise specifically agreed to in terms of the contract, the Buyer shall not be liable for any claim incorrect payment has been received on account of fresh imposition and/or increase Excise Duty. The benefit/credit of the CED under MODVAT Scheme duly authenticated by the authorities/representatives of the Central Excise Dept. shall be allowed to the purchaser in the invoice of concerned equipment. In case Central Excise staff refuses to issue a separate gate pass indicating the Excise Duty claimed from you, the original invoices raised for the supply of equipment will bear a certificate from the central Excise staff to the fact that Excise Duty has been charged from you and the amount so charge will be indicated. In case the firm is silent about Central Excise Duty in their offer, then the CED will be assumed as inclusive in quoted prices. The firms/suppliers indicating nil or concessional rate of Excise Duty on raw materials and/or components used directly in their tender will have to absorb Excise Duty up to the manufacture full rate applicable at the time of tendering. The firms, which do not agree to this stipulation or indicate Excise Duty as extra without indicating the contracted stores taking place during applicable rate, be loaded with the pendency maximum slab of Excise Duty. However, in this case the contractactual applicable Excise Duty, subjected to the maximum slab , will be given to the firm at the time of delivery. iv) Statutory taxes should be paid after allowing all adjustments/discounts/exemptions permissible under relevant act so as to ensure that there is a least payout for PSTCL under the provisions of Law.

Excise Duty. 1. Where the excise duty is payable on advalorem basis, the Bidder should submit along with the tender, the relevant form and the Manufacturer’s Manufacturer‟s price list showing the actual assessable value of the stores as approved by the Excise authorities. 2. Bidders should note that in case any refund of excise duty is granted to them by Excise authorities in respect of Stores supplied under the contract, they will pass on the credit to the Buyer immediately along with a certificate that the credit so passed on relates to the Excise Duty, originally paid for the stores supplied under the contract. In case of their failure to do so, within 10 days of the issue of the excise duty refund orders to them by the Excise Authorities the Buyer would be empowered to deduct a sum equivalent to the amount refunded by the Excise Authorities without any further reference to them from any of their outstanding bills against the contract or any other pending Government Contract and that no disputes on this account would be raised by them. 3. The Seller is also required to furnish to the Paying Authority the following certificates: (a) Certificate with each bill xxxx to the effect that no refund has been obtained in respect of the reimbursement of excise duty made to the Seller during three months immediately preceding the date of the claim covered by the relevant billxxxx. (b) Certificate as to whether refunds have been obtained or applied for by them or not in the preceding financial year after the annual Audit of their accounts also indicating details of such refunds/applications, if any. (c) A certificate along with the final payment bills of the Seller to the effect whether or not they have any pending appeal/protest for refund or partial refund of excise duties already reimbursed to the Seller by the Government pending with the Excise authorities and if so, the nature, the amount involved, and the position of such appeals. (d) An undertaking to the effect that in case it is detected by the Government that any refund from Excise Authority was obtained by the Seller after obtaining reimbursement from the Paying Authority, and if the same is not immediately refunded by the Seller to the Paying Authority giving details and particulars of the transactions, Paying Authority will have full authority to recover such amounts from the Seller’s Seller‟s outstanding bills against that particular contract or any other pending Government contracts and that no dispute on this account would be raised by the Seller. 4. Unless otherwise specifically agreed to in terms of the contract, the Buyer shall not be liable for any claim on account of fresh imposition and/or increase of Excise Duty on raw materials and/or components used directly in the manufacture of the contracted stores taking place during the pendency of the contract.