Rashtriya Ispat Nigam Ltd vs M/S Dewan Chand Ram Saran

The Supreme Court addressed the legality of the deduction of service tax from the respondent's bills by the appellant under Clause 9.3 of their contract. The Court held that the interpretation of the clause by the arbitrator was a plausible view, thus overturning the Bombay High Court's decision that deemed the award illegal. The Court reaffirmed the arbitrator's authority in interpreting contractual terms, emphasizing that the deduction was permissible under the contract's provisions, thereby restoring the arbitrator's award dated 25.5.2004.