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"CROSS FALL BREACH (Contractor. Instructions To Bidder (ITB)- Clause 22 General Conditions of Contract (GCC)- Clause 31.1

1. All the three contracts will contain a cross fall breach clause specifying that breach of one contract will constitute breach of the other.

2. Article 3.7 of all three contracts It is expressly agreed to by the EPC contractor that notwithstanding the fact that the contract is termed as engineering procurement and construction (EPC) contract or indicates the break-up of the contract consideration, or awarded three contracts for convenience of operation. It is infact one composite Contract on single source responsibility basis and the contractor is bound to perform the total contract in its entirely and non-performance of any part of portion of [2023:RJ-JP:23645] (30 of 45) [STR-217/2020] the contract shall be deemed to be a breach of the entire contract.

CONTRACT PRICE The total Contract price for the entire scope of this contract as detailed in letter of intent is Rs. 4900.06 crores. This shall be firm till completion of the contract.

TAX DEDUCTED AT SOURCE As regards the Indian Income Tax, surcharge on Income Tax, any cess thereof and any other similar tax etc, the RVUN shall not bear any liability whatsoever, irrespective of the mode of contracting. The contractor shall be liable and responsible for payment of all such taxes, if attracted under the provisions of law. The Works Contract Tax and Income Tax will be deducted at source on composite value (combined value of all the three contract as described above) of turnkey EPC Contract. If the State or Central Govt. brings any other tax deduction at source into effect, during the validity of the Contract then the same shall be deducted at source as per the prevailing rules.

(e) Award of three contracts could not and did not dilute the responsibility of the assessee to successfully complete the erection of the thermal power project as per the specification on single source responsibility basis.

(f) There was a provision in the contract itself about tax deduction at source (for short "TDS") and accordingly TDS on Works Contract Tax was also deducted on composite value of the turnkey EPC Contract.

(g) The letter dated 06.07.2009 also indicates that the goods were to be imported on CIF value for use in erection of the power project.

7.14 That the contracts were awarded to the respondent on EPC contract basis / Single Source Responsibility basis / Turnkey basis (GCC-13.2 &opening of C-3832, 3833 & 3834). Looking to the intention of the parties and stipulations in the contracts the contracts for supply and service had to be awarded to the same party. Apart from the single NIT and unified BID, the ITB the GCC and the SCC etc. were uniformly applicable to all the Contracts. The respondent company was awarded the contract for it's expertise in erection and installation of Power Plants and not for its supplying, transporting, loading, unloading skills of the goods. Evidently the intention of the parties was only to execute work with material supplied by the respondent. Contractual clauses referred in the forgoing paras are enough to demonstrate that the form of the contracts is indicative of three separate contracts but in substance they are one indivisible works contract for supply of material and erection and installation of equipments. They are so intertwined and interdependent that we are unable to accept them as separate and independent contracts and unhesitatingly hold them an indivisible Works Contract."