RASHTRIYA ISPAT NIGAM LTD. vs M/S DEWAN CHAND RAM SARAN

The Supreme Court addressed the legality of service tax deductions under Clause 9.3 of the contract between Rashtriya Ispat Nigam Limited and M/s Dewan Chand Ram Saran. The Court held that the arbitrator's interpretation of the contract was plausible, and the High Court's decision to set aside the award was incorrect. The Court reinstated the arbitrator's award, affirming that the appellant was entitled to deduct service tax from the respondent's bills as per the contractual terms.