National Highways Authority Of India vs M/S Jsc Centrodostroy

The Supreme Court addressed the applicability of Clause 70.8 of the Conditions of Particular Application (COPA) regarding the reimbursement of increased service tax costs incurred by the contractor. The Court held that the contractor is entitled to compensation for additional costs arising from changes in service tax rates, specifically from 5% to 10.30%, under Clause 70.8, as these changes occurred after the bid submission date. The judgment affirmed the arbitral tribunal's decision to grant compensation for both the insurance premium and bank guarantee charges, emphasizing the need for fair adjustment in contract pricing due to legislative changes.