Order:

This Writ Petition is filed to declare that the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and Building and other Construction Workers Welfare Cess Act, 1996 and the Rules framed thereunder are not applicable to the petitioner’s factory, which was set up prior to the constitution of the Andhra Pradesh Building and other Constructions Welfare Board under Section 18 of the Main Act and to declare that the impugned communication dated 04.06.2021 issued by the second respondent is without jurisdiction and a consequential direction was also sought to restrain the respondents from collecting the Cess under the Building and other Construction Workers Welfare Cess Act, 1996 and the Rules framed thereunder.

The case of the petitioner is that it is a Company incorporated under the Companies Act, 1956 and engaged in the business of manufacture of chemical products; it has set up a factory at Perikigudem village, Mandavalli Mandal, Krishna district and obtained a licence from the Inspector of Factories, Machilipatnam; the Andhra Pradesh and other Constructions Welfare Board was established by the Government under Section 18 of the Main Act and the Board came into existence on 30.04.2007; petitioner’s factory was constructed and was in existence even before the Board came into existence with effect from 30.04.2007 and hence no Cess under the Cess Act can be levied on the petitioner prior to 30.04.2007; the second respondent issued a notice on 18.09.2015 alleging that the petitioner has failed to comply with the provisions of the Main Act and the Cess Act and that the intimation of construction was not given to the second respondent within the stipulated time and failed to pay 1% Cess on the cost of construction etc.; petitioner Company submitted its reply to the said notice on 16.10.2015 stating, inter alia, that the provisions of the Main Act and the Cess Act are not applicable to its factory; after lapse of five years, based on a purported letter dated 15.12.2017 of the regional Vigilance and Enforcement Officer, Vijayawada, the second respondent issued another notice dated 20.03.2021 calling upon the petitioner to attend the hearing on 24.03.2021 before the Deputy Commissioner of Labour, to which the petitioner submitted a reply on 12.04.2021 stating, inter alia, that the purported letter dated 15.12.2017 of the Regional Vigilance and Enforcement Officer, Vijayawada and the notice dated 05.06.2018 were not received by the petitioner after it has submitted its reply on 16.10.2015; the second respondent issued another notice dated 20.04.2021 calling upon the petitioner to attend the next hearing in the office of the Joint Commissioner of Labour, Zone-II, Eluru on 26.04.2021 and also requested to pay 1% Cess on the total cost of construction i.e., Rs.9,38,160/- before 26.04.2021; thereafter, a show cause notice was issued on 27.04.2021 by the second respondent directing the petitioner to pay the said amount; another letter was issued on 19.05.2021 directing the petitioner to pay 1% Cess within seven (7) days and the impugned communication dated 04.06.2021 is received by the petitioner directing him to pay 1% Cess on the estimated cost of construction, to produce documents and to attend the hearing on 11.06.2021; petitioner submitted its reply to the same on 10.06.2021; challenging the said proceedings dated 04.06.2021, the present Writ Petition is filed.

Learned Government Pleader for Labour has passed on the written instructions issued by the Joint Commissioner of Labour, Zone-II, Eluru, which is dated 15.07.2021, stating, inter alia, that the provisions of the Main Act and Cess Act are deemed to have been come into force on 1st March

1996 and 3rd November 1995 respectively and hence the contention of the petitioner that the Main Act and Cess Act are not applicable to the factories which are set up prior to constitution of Welfare Board is not correct; the building or other