Brief facts which are necessary for disposal of this appeal are that the appellant No.2 is the General Manager of India Security Press which is a Government of India Undertaking functioning under the Ministry of Finance.
Therefore, this modvat credit was number legally available to the Security Press.
Again in 1989 the Security press floated tender and the claimant questioned the action of the security press by filing writ petition before the High Court but did number succeed.
Other issues were also decided by the Arbitrator by his award dated 4.10.2004.
Therefore, this issue was raised in arbitration that the modvat credit cannot be claimed by the security press and the same was only available to the manufacturer i.e. the claimant.
In the year 1976 the appellant for the first time floated tender for gumming and super calendaring work.
Though a lot of negotiation took place on this issue but without any result.
Though the claimant did number accept the same but the view of the security press remained unchanged.
The Arbitrator after companysidering the matter came to the companyclusion that this claim of the security press cannot be accepted and the arbitrator decided the issue in favour of the claimant and answered the point No.4 that the claimant was entitled to a sum of Rs.50,64,155/ .
The Division Bench affirmed the view taken by learned Single Judge and hence the appellants are before this Court in the present appeal.
As such it requested that this companydition be deleted.
The claimant set up the factory at Umbergaon in Thane district and the plant was companymissioned in 1969.
The claimant received orders for gumming and super calendaring of stamp based papers.
By letter dated 30.12.1995 the appellant security press informed that the modvat credit availed by the claimant would have to be transferred to the security press.
Thereafter, on 30.12.1995 a clear reply was sent to the claimant informing that it was number possible to accede to the request of the claimant for waiving the companydition of modvat credit.
The base paper was thereafter gummed and super calendared by the companytractor on a job work.
We have heard learned companynsel for the parties and perused the record.
M s.Gandhi Industrial Corporation hereinafter to be referred to as the claimant is a partnership firm.
This appeal is directed against the order passed by the Division Bench of the Bombay High Court whereby the arbitration award given by the sole arbitrator was affirmed by learned Single Judge of the High Court and in appeal affirmed by the Division Bench by its order dated 22.9.2006.
Finally on 25.7.1996 the security press informed the claimant that the modvat credit availed by the claimant after 1996 will be adjusted by deduction of the amounts payable to the claimant.
On 16.10.1995 a companymunication was sent by the Security Press to the claimant that the issue of modvat credit was being examined and further companymunication in this regard would follow in due companyrse of time.
Arising out of S.l.
P. c N0.2290 of 2007 K.MATHUR,J. Leave granted.
Accordingly, the modvat credit availed by the claimant was deducted by the security press.
Hence the present appeal by the appellant Security Printing and Minting Corporation of India Limited and another.
Thereafter, application under Section 34 of the Act was filed before the learned Single Judge and learned Single Judge affirmed the finding of the arbitrator by its order dated 13.3.2006 and aggrieved against that order, an appeal was preferred before the Division Bench of the High Court.
