Petitioner challenged deduction of 1% labour cess on bill amounts for road laying work. Court held that road laying falls under 'building or other construction work' under Section 2(d) of the BOCW Act, making the deduction lawful. Writ petition dismissed.
Direction to stop deduction of 1% labour cess denied; action of Authorities upheld.
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THE HON’BLE SRI JUSTICE C. PRAVEEN KUMAR WRIT PETITION No. 28804 of 2008
ORDER:
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““ 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 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,
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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) ….”
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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.
Writ Petition is dismissed . No order as to Costs.
_______________________________ JUSTICE C. PRAVEEN KUMAR
Dated: 11.07.2022 SM.
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THE HON’BLE SRI JUSTICE C. PRAVEEN KUMAR
W.P. No. 28804 of 2008
Date: 11.07.2022
SM.
1 issue framed by the court
Whether deduction of 1% labour cess on bill amounts for laying B.T. road constitutes illegal action contrary to the Building and Other Construction Workers Act, 1996.
3 provisions across 1 enactments
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
