BEFORE THE OFFICE OF THE COMMISSINER OF GST & CENTRAL EXCISE

4th FLOOR, MTNL BUILDING, ADMINSTRATIVE WING, SECTOR – 16A, VASHI,

NAVI MUMBAI – 400703.

IN THE MATTER OF

SHOW CAUSE NOTICE DATED 30.03.2022 ISSUED UNDER FNO.

GADT/CnG/ADT/GST/1193/2021-GR-11-CGST-ADT CIR-1-ADT-RAIGAD

AND IN THE MATTER OF

M/s. CAMERON (SINGAPORE) PTE. LTD – (INDIA PROJECT OFFICE)

P- 21, TTC INDUSTRIAL AREA,

THANE – BELAPUR ROAD, MIDC,

THANE, MAHARASHTRA – 400710.

MOST RESPECTFULLY SHEWETH

1. M/s. Cameron (Singapore) PTE. LTD – (India Project Office) P- 21, TTC Industrial
Area, Thane – Belapur road, MIDC, Thane, Maharashtra – 400710. (hereafter referred
as “Noticee”), having GSTIN – 27AADCC5259P1Z3, is engaged in the supply of
service & goods.

2. The Noticee has been called upon vide the above-referred Show Cause Notice
(hereinafter referred as “SCN”), to show cause as to why:
 a. Short payment of IGST w.r.t. the support services supplies to M/s ONGC meant
for exploration of Oil and Gas in offshore / onshore area due to wrong
classification of service.
b. IGST is short paid by the Noticee, which is in contravention of Section 5 & 9 of
IGST Act, 2017 read with Section 7, 9, 37, 39& 49 of the CGST Act, 2017,
Section 20 of IGST Act, 2017 and relevant provisions of Maharashtra Goods And
Service Tax Act, 2017 (MGST Act, 2017).

3. BRIEF FACTS OF THE CASE

Business of the Noticee

I. M/s. Cameron (Singapore) PTE. LTD – (India Project Office) P- 21, TTC
Industrial Area, Thane – Belapur road, MIDC, Thane, Maharashtra – 400710,
having GSTIN – 27AADCC5259P1Z3, is engaged in the supply of service &
goods.

II. The Noticee i.e., M/s Cameron Singapore PTE Ltd-India Project Office had
entered into an Agreement No. 9010028603 with M/s ONGC on 08.02.2019. The
scope of work according to the said agreement No. 9010028603 is reproduced
below:

Scope of work for service engineer for inspection & installation of Cameron
Wellhead –
To provide services for inspection & installation of Cameron make Wellheads, X-
mas tress & accessories at ONGC onshore base and on Offshore Rig/ Well site as
per the callout issued by ONGC. The scope includes but not limited the following:

i. Duties to be performed at Shore Base: -

From Sr. No. 1 to 8
ii. Duties to be performed at Rig Site : -
From Sr. No. 1 to 13

III. M/s ONGC in the said Agreement has described all above referred supplies as
“Services of Installation of Camron Wellhead Stack on Offshore Rigs for
 Exploratory, Development & Work Over Wells in Offshore India, as per
scope of Work.” The callout may for inspection / repair / Rigup / Rig down etc.
At the base or work on the Rig. After Installation of wellhead on rig, pressure
testing should be carried out as per operational requirement or 80% of the
equipment rating whichever is lesser.
IV. The Noticee has been paying tax considering their supplies as ‘composite supply’
where the supply of service was the principal supply. It is observed that during the
period from 26.01.2018 to 30.09.2019, the Noticee has paid IGST @ 12% in
terms of description as specified at sr. no. 24 in column no. 3 item (ii) of
notification no. 8/2017 – IT (Rate) dated 28.06.2017. Whereas, the fact is that the
services supplied by the Noticee to ONGC, during the said period, appear to be
classifiable under Chapter Heading of Scheme of Classification of Services
specified at sr. no. 24 and as per the description given at item no. (iii) of
notification no. 8/2017 – IT (Rate) dated 28.06.2017 where tax @18% was
applicable up to 30.09.2019.

V. The Noticee has been providing support services to M/s ONGC i.e. To provide
services for inspection & installation of Cameron make Wellheads, X-mas tree &
accessories at ONGC onshore base and on Offshore Rig/Well site with the help of
engineers and other highly skilled operators who provide assistance in the drilling
and extraction of petroleum crude or natural gas or both from the designated oil
filed. These services are aptly classifiable in the terms of the entry at Sr. No. 24(ii)
under the service heading 9986, bearing the description “Support services to
exploration, mining or drilling of petroleum crude or natural gas or both” of the
notification no. 08/2017 – I.T. (Rate) dated 28.06.2017 as amended by the
notification no. 1/2018 – I.T. (Rate) dated 25.01.2018 and notification no. 19/2019
– I.T. (Rate) 30.09.2019 w.e.f. 01.10.2019 attracting IGST at rate of 12%.

VI. The impugned activities undertaken by the Noticee will be squarely covered under
the phrase “operation of oil or gas extraction unit on a fee or contract basis.”
According to the literal rule of legal construction, it is apparent that the Noticee’s
activities will be in the nature of support services only as the operations for
extraction of oil and gas is completely dependent on Services of Installation of
Camron Wellhead Stack on Offshore Rigs for Exploratory, Development & Work
 Over Wells in Offshore India done by them as any disruption in the impugned
services will severely hamper the activities of oil or gas extraction from the
oilfield.

VII. Further it may also be clearly seen that the impugned services provided by the
Noticee will not be covered under SAC 99831 bearing the description “geological
and geophysical consulting services”, as the said heading includes services which
are in nature of consultation, advice, guidance with respect to the minerals
deposits, oil and gas field, the study of the properties of the underlying earth
surface, rock formations, underground water, feasibility study with respect to the
exploration and development of oil or gas field, etc. Thus, it is clearly seen that
the aforesaid services mentioned are the services which are in the nature of study
and analysis activities undertaken by professionals and technicians whereas the
impugned services are not of such nature, and thereby, will not be covered by the
heading 9983.

VIII. Thus, the impugned services provided by the Noticee will be covered in terms of
the entry at Sl. No. 24(ii) of the notification no. 08/2017 – I.T. (Rate) dated
28.06.2017 as amended by the Notification No.1/2018 – I.T.(Rate) dated
25.01.2018 and Notification No. 19/2019-C.T.(Rate) dated 30.09.2019 attracting
IGST at the rate of 12%. However, the said IGST rate of 12% is applicable with
effect from 01.10.2019 after the amendment in the said entry at SI. No. 24(ii) has
been carried out vide the Notification No. 19/2019 – IT (Rate) dated 30.09.2019
which substituted the texts “SERVICE OF” with the texts “SUPPORT
SERVICES TO” in the said entry at SI. No. 24(ii) of the Notification No.
08/2017- I.T. (Rate) dated 28.06.2017 as amended by notification no.1/2018-I.T.
(Rate) dated 25.01.2018.

IX. Thus, prior to the amendment by the notification no. 19/2019- I.T. (Rate) dated
30.09.2019 w.e.f. 01.10.2019, the impugned services were covered by the entry at
SI. No. 24(iii) and not by the entry at SI. No. 24(ii) because entry at SI. No. 24(ii)
read as “service of exploration, mining or drilling of petroleum crude or natural
gas or both” which is clearly distinct from the impugned services as the impugned
services, as discussed above, are support services to the exploration, mining or
 drilling of petroleum crude, or natural gas, or both and not the actual services of
exploration, mining, or drilling of petroleum crude, or natural gas or both.

X. This fact is also substantiated by the introduction of the Notification No. 19/2019
– I.T. (Rate) dated 30.09.2019 w.e.f 01.10.2019 which has to carry out the
changes in the impugned entry at SI. No. 24(ii) of the Notification No.08/2017
I.T. (Rate) dated 28.06.2017 as amended by the Notification No. 1/2018 I.T.
(Rate) dated 25.01.2018 by substituting the phrase “service of” with the phrase
“Support services to” with an objective to include such support services as those
supplied by the Noticee, which were not getting covered under S.I. No. 24(ii) in
the absence of the phrase “Support services to.”

XI. Prior to this amendment vide notification No. 19/2019 – I.T.(Rate) dated
30.09.2019, the impugned services were being covered under entry at SI. No
24(iii) bearing the description Support services to mining, electricity, gas, and
water distribution other than (ii) above, attracting GST at the rate of 18%. Had it
not been the case, then there would have been no need to amend the entry at SI.
No. 24(ii) by way of introducing Notification No. 19/2019-I.T. (Rate) dated
30.09.2019 wherein the phrase “service of” has been substituted by “Support
services to” in order to bring support services to exploration, mining or drilling
under SI.No.24 (ii) of the Notification No.08/2017 – I.T. (Rate) dated 28.06.2017.

XII. During the course of audit, the issue of short payment of tax on the supplies of
support services to M/s ONGC was discussed with the Noticee at length.
However, the Noticee did not argue to the Auditor’s observations in respect of the
issue, as discussed above. Subsequently, the Office of the Commissioner of GST
&Central Excise, Mumbai vide letter dated 21.12.2021 has requested the Noticee
to pay the differential amount of IGST of Rs 1,34,18,301 /-, as detailed above,
along with applicable interest & penalty and to submit the compliance. The
Noticee, vide letter dated 31.12.2021, conveyed his disagreement.

XIII. GST Audit on the records of the Noticee was undertaken by the Officer of Audit
Raigad Commissionerate for the period from July’2017 to 31st March’2019.
During the course of Audit, the records produced by the Noticee such as GST
returns filed, Profit & Loss account, Balance Sheets, Income Tax return, invoices
 of inward supply, invoices of outward supply and agreement of contract with M/s
ONGC, were scrutinized. On scrutiny, it was found that the tax payer has made
short payment of IGST on support service in relation to Oil and gas rendered to
M/s ONGC during the period from Jan, 2019 to March, 2019. The Noticee M/s
Cameron Singapore Pte. Limited, incorporated and validly existing under laws of
Republic of Singapore having its registered office at 2, Gul Circle, Singapore, is
engaged in the activity of providing support services in relation to the exploration
of Oil and gas to Oil and Natural Gas Corporation (ONGC), Reliance Industries
etc. The company has been awarded certain contracts by customers in India,
which require provision of related services in India. For this purpose, the company
has set up a ‘Project Office’ on October 15, 2008 and registered in India under
Part XI of the Companies Act, 1956 (as Project Office) as a foreign company.

XIV. During the course of Scrutiny of the Financials of the Noticee for the period July,
2017 to Mar, 2019, it was observed that certain amount in foreign currency
equivalent to Rs.46,67,221/- has been paid by the Noticee to their Fellow
Subsidiary Company namely Cameron International COR, situated in non-taxable
territory during the audit period. The amount has been paid as Operational
Expenses and Visa Processing Expenses towards an activity which qualifies as
“supply” in terms of Section 2(11) of the IGST Act, 2017 and meaning assigned
in section 7 of CGST Act, 2017 and the place of supply in terms of Sec.13(2) of
IGST is the location of the recipient. The activity provided by Cameron
International COR located in non-taxable territory, providing services to M/s.
Cameron Singapore Pte Ltd- India Project Office located in taxable territory is
import of services in terms of section 2(11) of IGST Act, 2017 and is taxable in
terms of notification no. 10/2017- IGST (rate) dated 28.06.2017, Sec. 2(11) of
IGST Act.

4. SCOPE OF WORK

Scope of Work for Service Engineer for Inspection & Installation of Cameron Wellhead
To provide services for Inspection & Installation of Cameron make Wellheads, X-mas tree &
accessories at ONGC onshore base and on Offshore Rig/well site as per the Callout issued by
ONGC. The scope includes but not limited to following: -

I. Duties to be performed at Shore Base:

1. Prepare a list of ONGC procured inventory (from Cameron) available at shore base on
every visit and submit the same to base supervisor & ONGC Headquarters.

2. The Shore base Inventory list (ONGC procured from Cameron) has to be maintained by
the Service engineer and handed over from person to person in case of change of service
engineer allocated to ONGC.

3. Inspect the inventory & identify damaged/non usable parts and suggest the need for any
repairs/refurbishment/replacements Or any additional spares & accessories for wellheads.

4. Inspect inventory of wellheads/Xmas tree & accessories to be used in the job called for.
Inspection also includes checking and function testing wellhead & X/mas tree prior to
dispatching it offshore.

5. Segregate the inventory going to be used in two sets as 'primary' & 'back up', prepare a
primary load out & back up load out, submit it to Shore base supervisor & ensure that both
primary & backup have been loaded in the boat for Rig.

6. After completion of the service job at rig site, Service engineer at shore base will
physically check the inventory received from Rig site, ensure there is no missing •tern against
the list of equipment dispatched. In case of any discrepancy immediate y inform the ONGC
Base Supervisor

7. Conduct post usage inspection.

8. Submit an Inspection Report encompassing the above with clear recommendations

regarding acceptability, working condition, additional requirement accessories, if any.

II. Duties to be performed at Riq Site:

1. Physically check the inventory received from Shore base. Ensure there is no missing item
against the list of equipment dispatched. In case of any discrepancy immediately inform the
ONGC Supervisor.
2. Inspect the items received at the rig to ensure no damage has been incurred to the inventory
while shipment to rig.

3. Identify requirement of any additional spares & accessories for wellheads.

4. Submit a duly signed written declaration to ONGC representative that all tools required to
execute the service job are available at the rig site.

5. Submit a written procedure duly signed by the Cameron Engineer to ONGC supervisor
prior to executing a service job.

6. Supervise & execute Rig up & Rig down various Sections of Wellheads & accessories on
the Rig as per instructions of ONGC.

7. Supervise & execute lowering of Christmas tree and feed through of control lines through
the tree.

a) Install all fittings and control lines on the tubing hanger and supervise make up
and landing of tubing hanger.
b) Supervise & execute Removal and installation of BPV / TWCV
c) Supervise & execute Installation of exit blocks on the tree.
d) Supervise & execute void test of the tubing hanger/ adapter flange.
e) Supervise & execute function test and leak off/ pressure test of tree valves.

8. Carry Out troubleshooting during operation on the rig.

9. At the conclusion of a service job, the Service Engineer will submit a Field Service
Order/Report for the assignment and obtain signature of O NGC representative on the Rig/
shore base.

a) This Field Service Order/Report will detail the services performed and the time spent
on the job and the original should also be submitted along with the Invoice.
b) It should also include a list & quantity of equipment consumed with both Cameron
Serial number & corresponding ONGC SAP code.

10. In case of any failure while conducting a service job a Non-Conformance Report must be
submitted to ONGC representative which shall include

a) Type of failure
b) Cause of failure
 c) Various operational attempts made to rectify the failure
d) Lessons learnt & how it can be avoided in future

11. At the conclusion of a service job, the Service Engineer will submit a list Of ONGC
procured (Cameron items) available at rig with corresponding Cameron serial number &
ONGC SAP code.

12. The Inventory list of Rig (ONGC procured from Cameron) has to be maintained by the
Service engineer and handed over from person to person in case of change of service
engineer allocated to ONGC.

13. At the conclusion of a service job, the Service Engineer will prepare a list Of equipment
to be back loaded from rig to shore base, submit it to ONGC supervisor & ensure that it has
been loaded in the boat for Shore base.

5. REMUNERATION AND TERMS OF PAYMENT

I. CORPORATION shall pay to CONTRACTOR for the services completed for each
call out work order issued by the representative of Head Well Service-HP HT Asset,
to be provided by the CONTRACTOR as per the Scope Of Work, as per the price
Schedule. The rates payable, shall be firm during the entire CONTRACT period,
including extension period, if any.
II. All Bills along with relevant supporting documents shall be submitted in triplicate
addressed to the General Manager - HDS(Drilling Department)
III. Invoices with original supporting documents duly countersigned by the
CORPORATION's representative/ engineer wherever applicable will be submitted
by the CONTRACTOR to CORPORATION and payment shall be made within 21
(twenty-one) calendar days from the date of receipt of invoice at the above office
The original invoice should also accompany the following documents/details:

1. Along with first invoice issued under GST Law:

Following documents / details should be invariably furnished along with the first
invoice issued under GST law indicating the GST Registration of service
provider:
a) Copy of valid GST registration certificate
b) Particulars required for making payments through Electronic Payment
Mechanism', in accordance with the clause on ‘MODE OF PAYMENT’ appearing
in Annexure-I (i.e., 'Instructions to bidders') of bid document.
c) Mobile No. (Optional).
d) E-mail ID.

2. Payment of Mobilization Charges:

a) Invoice (In accordance with the relevant GST rules),
b) Insurance policies (As applicable).
c) Inspection report (Pre-mob, as applicable).
d) Notification Certificate of Acceptance of Mob,
e) Certificate of ‘Commencement of operation' under this contract.
f) Deleted –

3. Periodical/Monthly payment:
a) Invoice (i.e., Tax invoice as per relevant GST rules, in original and duplicate,
clearly indicating GST Registration Number, Service Classification. GST Rate
and amount Of GST shown separately).
b) Insurance policies and proof of payment of premium (As applicable).
c) Details of statutory payments like EPF and ESI (as per clause 7.6.1 below),
etc., (As applicable).
d) Undertaking by the contractor regarding compliance of all statutes.
e) Certificate by the contractor stating that labour have been paid not less than
minimum wages. (As applicable)
f) Copy of Time sheet I Log Sheet IDPRs with summary showing non-operating
period, operating period, Rig move period, idle period, breakdown of equipment,
nondeployment I short deployment etc. (if any) and reasons thereof.
g) Attendance Sheet (How many person on board) / Manpower deployment sheet
[showing non deployment / short deployment etc. (if any) and reasons thereof].
 h) Statement Of persons travelled on chargeable basis (Recoverable), if
applicable.
i) Fuel charges (Daily consumption report Of fuel) and statement Of material/
consumption (incl. HSD, cement, mud chemicals, pot water, etc.) taken from
ONGC on chargeable basis, if applicable.
j) Catering Bill (Log Sheet).
k) Telephone Bill (Log sheet).
l) Any Other document specifically mentioned in the Contract, nr supporting
documents in respect of other claims (if any), permissible under the Contract.
4. Payment towards Indian Agent Commission (IAC):
a) Invoice of IAC (stamped pre-receipted bill)
b) Particulars required for making payments through 'Electronic Payment
Mechanism', in accordance with the clause on 'MODE OF PAYMENT' appearing
in Annexure-I (i.e. 'Instructions to bidders') of bid document.
c) Copy of payment advice (if applicable) against which IAC is claimed,
d) E-mail ID.

IV. Particulars required before releasing payments to foreign CONTRACTOR

(nonresident as per Income Tax Act, 1961):

The particulars as per clause 12.1 of Annexure-I are invariably required before releasing
payments to foreign CONTRACTOR, in accordance with the requirements for making
remittances to non-residents as per Income Tax Act, 1961 (as amended from time to time).

In addition to the said particulars submitted along with the bid, the CONTRACTOR should
also provide any other information as may be required for determining the taxability of the
amount to be remitted to the non-resident. Further, the CONTRACTOR shall be liable to
intimate the subsequent changes (if any) to the information submitted against any of the said
particulars, along with full details.

Bidders should note that any delay in submission of information/documents within the
specified time may lead to the Income Tax Department directing ONGC to deduct tax at a
higher rate than at which it may otherwise have directed. Such increased tax liability shall be
recovered from contractor.

V. In the event of any dispute in a portion or whole of any invoice, the CORPORATION
shall make payment of undisputed portion and shall promptly notify the CONTRACTOR's
representative in writing for the remaining portion in CONTRACT to mutually resolve the
dispute and if resolved in part or full, payment shall be made to the CONTRACTOR within
30 days of such settlement.

VI. ONGC's right to question the amounts claimed

Payment of any invoice shall not prejudice the right of the Corporation to question the
allowability under this Agreement of any amounts claimed therein, provided ONGC, within
one year beyond the expiry of each CONTRACT year, delivers to CONTRACTOR, written
notice identifying any item or items which it questions and specifying the reasons therefore.
Should ONGC so notify CONTRACTOR, such adjustment shall be made as the parties shall
agree. These provisions shall be reciprocal for similar rights to the CONTRACTOR.

The CONTRACTOR shall provide on demand a complete and correct set Of records
pertaining to all costs for which it claims reimbursement from ONGC and as to any payment
provided for hereunder, which is to be made on the basis of CONTRACTOR's costs.

1. Details of statutory payments like EPF and ESI etc.

Wherever applicable, the Contractor (including those engaging 'International
Workers') shall have itself registered under Employees' Provident Fund and
Miscellaneous Provisions Act, 1952 and Employees' State Insurance Act, 1948 and
follow the relevant statutory provisions including Rules made there-under concerning
contractual workers. The contractor shall be required to submit the following
documents/details to the Corporation:
i. Copy of PF-ECR duly stamped by the designated Bank, along with a print of
the digitally signed PDF data sheet of the ECR, as proof of payment, each
month, details of this PDF data sheet shall be verified by the appropriate
authority (i.e. Payment Making Authority) in the Corporation from the official
website of EPFO.
ii. (A) Copy of the online challan endorsed / stamped by the designated bank as
proof of receipt of payment towards monthly contribution of ESI contribution.
(B) Copy of Return of contribution in respect of ESI for each contribution
period of the six months i.e., for the contribution period ended 30th Sept and
the contribution period ended 31st March.

iii. As an Annexure to each EPF-ECR and ESI Challan(s), contractor shall also furnish the
following Certificates:
a. The furnished information is correct to the best Of his knowledge.

b. In case any discrepancies or irregularities is lare noticed in this undertaking, then ONGC is
free to inform the PFIESIC Authorities.

c. Before the completion of contract, contractor shall serve one month notice to all his
contractual workers, informing that their services will be terminated.

d. Within one month on completion/expiry of the contract, contractor shall pay all the dues/
terminal dues such as leave with wages, bonus (if applicable), Gratuity (if applicable), to alt
his contractual workmen, failing which contractor's Bank Guarantee/ Security Deposit may
be withheld by ONGO

Corporation shall maintain these records and verify the deposit of statutory contribution made
by the contractors with the EPFO/ESI authorities, where deemed necessary. However, before
making payment of the last bill/invoice of the Contractor, the appropriate authority (i.e.,
Payment Making Authority) in the Corporation, shall verify the details/status or the payment
towards EPF/ESI made by the Contractor from the authorities/official website of EPF/ESI. In
case the information furnished by the Contractor is found to be incorrect the Corporation
shall take appropriate action against the Contractor.

Note: Conditions for applicability of above provisions

Above clause w.r.t. submission of details on EPF and ESI payments shall not be applicable in
following types of contracts:

(a) In those Contracts wherein the services/jobs has been performed exclusively in the
premises of the contractor, certificate to the effect is to be submitted by the Contractor that
services/jobs to be executed under the contract have been performed exclusively in his
premises.

OR

(b) In those contracts also wherein, contractor has employed only their full time regular
employees for execution of the contract, certificate to the effect is to be submitted by the
contractor that for execution of the contract, no contractual labour has been employed and
only full time regular employees of the contractor have been employed,

OR
(c) Fulfillment of conditions at (i) on EPF and (ii) on ESI mentioned below:

(i) Information sought in above clause pertaining to only E PF shall not be required to be
submitted in those contracts wherein the contractor has employed only those of his
employees whose pay exceeds Rs_ 6500/- per month thereby they are covered under the
definition of "Excluded Employee". Certificate to the effect is to be submitted by the
contractor that for execution of the contract, the monthly wages of all employees who have
been employed, exceeds to Rs. 6500/- per month or they have been treated as "Excluded
Employee".

(ii) Information sought in above clause pertaining to only ESI shall not be required to be
submitted in those contracts wherein the contractor has employed only those of his
employees whose pay exceeds Rs. 15000/- per month as in terms of the current provisions of
the ESI Act, 1948 an employee whose monthly pay exceeds FRS. 15000/- is outside the
purview of the ESI Act. Certificate to the effect is to be submitted by the contractor that for
execution of the contract, the monthly wages of all employees who have been employed,
exceeds Rs. 15000/- per month. Further, ESI Act, 1948 is applicable only in areas where it
has been made applicable by Gazette Notification in this regard. (In the areas of ONGC
operation. the ESI Act is currently applicable in all areas except the NE States. However, the
Act is applicable in Guwahati. Applicability in new areas of operation is to be verified from
the office of the ESI Corporation concerned.)

In case a contractor falling under the provisions of the Note mentioned above does not submit
the required details on EPF and ESI payments, then in that case, the Contractor shall be
required to indemnify ONGC for any liabilities arising out of declarations made by him in
future on violation or provisions of the EPF Act 1952 and ESI Act 1948.

VII. (Applicable in ICB tenders only) Payment Of commission / fee / remuneration of

Indian agent / consultant / representative / retainer / associate of foreign principal.

The commission/ fee/ remuneration of the Indian agent/ consultant/ representative/

retainer/associate will be paid within 15 days of the payment of first invoice made to the
CONTRACTOR provided installation/commissioning of equipment by such agent/
consultant/ representative/ retainer/ associate is not involved. In such cases, the amount Of
commission/fee/remuneration will be deducted by ONGC from payment of first invoice of
the CONTRACTOR and paid to the Indian agent/consultant} representative/ retainer/
associate in non-convertible Indian rupees at the closing market rate Of exchange declared by
SBI on the day prior to price bid/revised price bid (if any) opening.

Where, as a condition of CONTRACT, the equipment is to be installed/ commissioned

satisfactorily by Indian agent/ consultant" associate/ representative/ retainer/, the payment of
commission/fee/remuneration shall be made within 30 days of satisfactory
installation/commissioning and issue of a certificate to the effect by the authorized officer of
ONGC. The payment of Indian agent/ consultant/representative/ retainer/associate will be
subject to the condition that he sends stamped pre-receipted bill for the
commission/fee/remuneration.

The closing market rate of exchange declared by SBI on the day prior to the price bid/revised
price bid (if any) opening will be taken into consideration for working out the
commission/fee/remuneration of Indian agent/ consultant/ representative/ retainer/ associate.