Document Fragment View

Matching Fragments

(ii) For the issuance of an appropriate writ/order/ direction to the Respondents, or a writ in the nature of mandamus, directing the Respondents to refund, forthwith and at the earliest, the sum of Rs. 32,59,088 and such further deductions of the like nature, illegally and arbitrarily deducted by Respondent No. 4 as Labour Cess on supply of materials under the BOCW Act, the Cess Act and the Cess Rules in respect of the West Singhbhum Package-2 Project under the Deendayal Upadhyaya Gram Jyoti 2025:JHHC:14131-DB Yojna ('DDUJGY") Scheme;

7. The matter was heard by the learned Single Judge of this Court. The learned Single Judge, on appreciation of the statutory provision, as contained under the provision of Building & Other Construction Workers Welfare Cess Act, 1996 (hereinafter referred to as the "Cess Act, 1996") and the judgment rendered by the Hon'ble Apex Court in the case of Uttar Pradesh Power Transmission Corporation Limited & Anr. vs. CG Power and Industrial Solutions Limited and Anr., 2021 SCC OnLine 383, has allowed the writ petition 2025:JHHC:14131-DB with the following direction, which is being referred as under:-

42. The issue on merit has been argued by the learned 2025:JHHC:14131-DB counsel for the appellant as also the learned counsel for the writ petitioner, the respondent herein.

43. We have considered the order passed by the learned Single Judge, wherein, the purport of the Labour Cess Act has been taken into consideration.

44. We have discussed the statutory command, as referred in the judgment rendered in the case of Uttar Pradesh Power Transmission Corporation Limited (Supra), wherein, the "Labour Cess" has been dealt with which strictly bars to collect the Labour Cess on the supply of material, for ready reference, the relevant paragraphs of the aforesaid judgment, i.e., paragraph-51 to 54, are being referred as under:-

53. Cess under the Cess Act read with the BOCW Act is leviable in respect of building and other construction works. The condition precedent for imposition of cess under the Cess Act is the construction, repair, demolition or maintenance of and/or in relation to a building or any other work of construction, transmission towers, in relation inter alia to generation, transmission and distribution of power, electric lines, pipelines, etc. Mere installation and/or erection of pipelines, equipments for generation or transmission or distribution of power, electric wires, transmission towers, etc. which do not involve construction 2025:JHHC:14131-DB work are not amenable to cess under the Cess Act. Accordingly no intimation or information was given or any return filed with the assessing officer under the Cess Act or the Inspector under the BOCW Act in respect of the first and second contracts, either by Upptcl or by Respondent 1.