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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY
Kamarajar Port Limited, Rep by General Manager (Operations) – Appellant
Versus
Tamil Nadu Building and Other, Represented by its Secretary – Respondent
| Table of Content |
|---|
| 1. factual background of the case (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. arguments presented by the parties (Para 7 , 8 , 9 , 10 , 11 , 12) |
| 3. court's analysis of the arbitration award (Para 13 , 14 , 15 , 16) |
| 4. analysis of statutory provisions (Para 17 , 18 , 19 , 21 , 22) |
| 5. jurisdiction and obligations under bocw act (Para 23 , 24 , 25 , 26 , 27) |
| 6. determination of refund claims and compliance (Para 28 , 29 , 30) |
ORDER :
A. The Petition:
B. The Factual Matrix:
3. During the execution of the project, the Chief Technical Examiner of the organization made a technical inspection of the project from 02.08.2016 to 05.08.2016. While so, he observed that as per the Act, the capital dredging work will come within its purview. Even during the pre-bid clarification, the tenderer sought for waiver of the payment of cess, which was not granted and as per the conditions of the tender, the contractor was required to pay all the taxes, duties etc. However, the cess payable under the Building and Other Construction Workers’ Welfare Cess Act, 1996, (hereinafter referred to as ‘the CESS Act’) was not deducted from the contractor’s bills. On the strength of the above report, the Chief Technical
Dredging activities fall within the definition of construction work under the BOCW Act, affirming cess obligations for such activities.
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.
The interpretation of the Building and Other Construction Workers Act and the Cess Act requires the establishment of welfare boards for the effective levy and collection of cess; until then, contract....
The imposition of 1% cess under the Building and Other Construction Workers Act is a statutory obligation aimed at benefiting workers, and is applicable despite claims regarding the Factories Act exe....
(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 ....
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....
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 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 ....
Cess under the Cess Act read with BOCW Act is leviable in respect of building and other construction works.
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