Back
HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
PUSHPENDRA SINGH BHATI, CHANDRA PRAKASH SHRIMALI
Syad Luqman & Sons inside Sojati Gate – Appellant
Versus
State of Rajasthan – Respondent
JUDGMENT :
Pushpendra Singh Bhati, J.
1. The instant writ petitions have been preferred claiming the following reliefs:
“i. by an appropriate writ, order or direction the respondents no.1 to 3 may be directed to not deduct the labour cess at source as per the circular dated 9.7.2010 (Ann.3) to the tender of the petitioner dated 29.6.2009 (Ann.2).
ii. Any other appropriate order which this Hon’ble Court deems fit just and proper in the facts and circumstances of the case may kindly be passed in favor of the petitioner.
iii. Cost be allowed to the petitioner.”
2. Brief facts of the case are that the petitioner is a Partner of M/s. Syed Luqman & Sons, Jodhpur, and the said Firm being a registered ‘AA’ Class PWD Contractor, was engaged in execution of the contract works, so awarded to it, relating to Government, Semi Government & Sub-contractors etc.
3. The bone of contention in the present case is that a Short- term Tender Information No.03/2009-10 dated 17.06.2009 (in short, ‘Tender in question’) was issued by the respondents in connection with construction of 48 Nos. LSQ Quarters in Police Line, Daijar, Jodhpur (Block ‘B’), as per which, the tender forms were to be submitted from 29.06.200
The Labour Cess cannot be retrospectively applied to tenders initiated before the cut-off date specified in the Circular dated 09.07.2010.
The main legal point established in the judgment is that the labour cess is not leviable on the supply of materials and consultancy charges under the Building and Other Construction Workers' Welfare ....
Taxes not to be imposed save by authority of law - Article 265 of Constitution is the source of power for the Union and States to impose taxes in accordance with law. Article 265 of the Constitution ....
The court held that deductions for the cess on construction payments are valid under the relevant welfare legislation, affirming that activities like laying pipelines constitute construction work.
Deductions for Labour Cess are only valid if included in the contract estimates, reaffirming the principle that contractors cannot be penalized for omissions not reflected in their agreements.
(1) Cess could only be recovered in the manner stipulated in Cess Act and Rules framed thereunder.(2) A contractor who enters into a pure Supply Contract is statutorily exempted from levy under BOCW ....
Deductions for Labour Cess are valid only if the cess is included in the contract estimates, as per the Building and Other Construction Workers Cess Act, 1996.
The main legal point established in the judgment is the importance of interpreting the statute by considering the text and context, and the applicability of the enabling provision of section 3(1-A) a....
Cess under the Cess Act read with BOCW Act is leviable in respect of building and other construction works.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
