Labour cess under the BOCW Act, 1996 is only applicable to contracts involving construction, repair, demolition, or maintenance. Contracts for the mere supply and installation of electrical goods are statutorily exempt from such levies.

JUDGEMENT & ORDER

Heard Mr. P Goyal, learned counsel assisted by Ms. T Ramchiary, learned counsel for the petitioner. Also heard Mr. B Goswami, learned Additional Advocate General, Assam for the respondents no. 1, 2 & 3 and Mr. D Gogoi, learned Standing Counsel, Assam Power Distribution Company Ltd. ( APDCL).

2. The petitioner before this Court is a Company registered on the Company Act, 1956 and is a public limited company. The Company is engaged in the business of manufacture and distribution of electronic energy meters, power distribution management projects and hybrid microcircuits in India and abroad. The Company undertakes the works contract pertaining to electrical goods and transmission lines and such works are regularly undertaken for government entities.

3. In response to an NIT dated 13.02.2019 issued by the APDCL for supply and installation of services, the petitioner applied for and was allotted the said work order. After completion of the work and submission of the bills, an amount of Rs 18,74,933/- (Rupees eighteen lakhs seventy-four thousand nine only) was deducted as labour component by the Labour Department from the bills which were raised and from the amounts to be released thereon by the APDCL authorities. It is this deduction of the labour component that is being challenged in the present proceedings. Learned counsel for the petitioner, therefore, submits that this deduction of the amount of Rs. 18,74,933/- (Rupees eighteen lakhs seventy-four thousand nine only) was carried out under purportedly under the provisions of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (the BOCW Act, 1996). Learned counsel for the petitioner submits that there was no construction work undertaken by the petitioner in pursuance to the NIT dated 13.02.2019 issued by the APDCL. However, it was a contract for supply and erection/installation of the electrical meters and components.

4. In this context, learned counsel for the petitioner has referred to a judgment of the Apex Court rendered in Uttar Pradesh Power Transmission Corporation Limited and Anr. vs. CG Power and Industrial Solutions Limited and Anr. reported in (2021) 6 SCC 53. Referring to the said judgment, learned counsel for the petitioner submits that the Apex Court in the said judgment has held that unless there are construction works involved, no labour component can be deducted under the provisions of the BOCW Act, 1996. It is further submitted that in cases involving mere supply and installation, without any element of construction work, such activities fall outside the purview of the said Act. Learned counsel for the petitioner therefore submits that this amount of Rs. 18,74,933/- (Rupees eighteen lakhs seventy-four thousand nine only) which was deducted on account of labour component was contrary to the provisions of the BOCW Act and therefore, should be refunded back to the petitioner.

5. Mr. B. Goswami, learned Additional Advocate General, Assam appearing for the State respondents submits that the labour component was deducted by the APDCL Authorities, who was the employer and who floated the tender and the amount has been deposited with the Labour Department. He further submits that in the affidavit filed on behalf of the Labour Department 2 (two) communications dated 10.04.2025 and 05-05-2025 were issued by the Additional Labour Commissioner-cum-State Cess Assessing Officer, Assam Guwahati, calling upon the petitioner to submit all relevant documents in connection with this said issue. However, the petitioner did not re