JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The question that arises in herein is in respect to constructions contracts, as to the amount on which the 1% cess under the Building and other Construction Workers' Welfare Cess Rules, 1998 (hereinafter 1998 Rules') would be payable.

3. The case of the Petitioner-M/s Girdhari Lal Constructions Pvt. Ltd., who is the contractor in question is, that the GST component cannot be added to the gross value of the work while determining the cess payable, inasmuch as the cess is payable only on the value of the work and not on the GST component. Reliance is placed upon the letter of award dated 21st February 2018,by the NBCC to the Petitioner- Company, in which it is clarified that the GST charged is over and above the basic contract value. The relevant extract of the letter of award is set out below:

"LETTER OF AWARD
xxx

Dear Sir(s),

This is to notify you that your Tender for the work under reference has been accepted. We are pleased to place this Letter of Award (LoA) on you for a total contract value of Rs.847,77,00,000.00 (Rs. Eight Hundred Forty Seven Crores Seventy Seven Lakhs Only) and is incl