The court dismissed a writ petition challenging the deduction of 1% labour cess from contract work bills. Upholding the levy, the court held that road laying constitutes construction work attract under the statutory Act, making the deduction legal.
Writ petition dismissed as the deduction of labour cess was held to be lawful.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
THE HON’BLE SRI JUSTICE C. PRAVEEN KUMAR WRIT PETITION No. 11988 of 2009
ORDER:
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Road via Jonnada, Akulapeta-D-Thallavalasa, Akkivaram, with estimated costs of Rs.67.50 lakhs.
“building or other construction work” reads as under:
““ building or other construction work ” means the construction, alteration, repairs, maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage
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works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply”.
“ (1) There shall be levied and collected a cess for the purposes of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996), at such rate not exceeding two per cent but not less than one per cent of the cost of construction incurred by an employer, as the Central Government, may, by notification in the Official Gazette, from time to time specify.”
(2) The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed.
(3) ….
(4) ….”
employer in such manner and at such time, including deduction at source in relation to a building or other
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construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed. The meaning of “building or other construction work” as defined in Section 2(d) of Act 27 of 1996, takes within its fold laying of roads as well.
_______________________________ JUSTICE C. PRAVEEN KUMAR
Dated: 11.07.2022 SM.
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THE HON’BLE SRI JUSTICE C. PRAVEEN KUMAR
W.P. No. 11988 of 2009
Date: 11.07.2022
SM.
2 issues framed by the court
Whether deduction of 1% labour cess on bilateral road work bills is illegal or arbitrary.
Whether laying of B.T. roads falls within the meaning of building or other construction work under the Act.
2 provisions across 1 enactments
M/s. Sri Sirdisai Balaji Constructions
Respondents
C. Praveen Kumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
