(A) Notwithstanding the fact that contract price is inclusive of excise duty and sales tax:
(i) Excise duty shall be only on Ex-works price and shall be paid/reimbursed at actual on the basis of due date of delivery, against documentary evidence.
(ii) Sales tax shall be paid at actual on the basis of due date of delivery.
(iii) Variation in excise duty and sales tax on bought out items shall not be entertained.
(B) Structural changes in and due to MODVAT Scheme: -
(i) In the event of any structural change occurred in the MODVAT Scheme after the date of submission of the tender till the currency of the contract, the benefit out of such change shall be passed on to either of the parties.
(ii) In the event of MODVAT credit being extended by the Government of India to more items than those already covered, the firm should advise the purchaser about the additional benefits accrued or any variation thereof, through a letter containing the following certificate, as may be considered necessary by the purchaser.
We hereby declare that we can avail additional duty set-offs as per latest MODVAT Scheme in force now and we hereby give a reduction of.... Per unit and agree to revise the prices indicated in the order. The current excise duty of ...........% is payable on this reduced price. Therefore, we request you to amend the order accordingly.