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[2026:RJ-JP:30449-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 12376/2026 CNR: RJHC020611372026 | URN: CW / 27323U / 2026 M/s Saini Multispecialty Hospital, Jaipur Road, Udaipurwati, District Jhunjhunu Through Its Proprietor Dr. Anil Saini.

----Petitioner Versus

1. State Of Rajasthan, Through Principal Secretary, Department Of Labour, Government Of Rajasthan, Government Secretariat, Jaipur.

2. Commissioner Of Labour, Department Of Labour, Rajasthan, Jaipur.

3. Cess Assessing Authority Cum Labour Welfare Officer, Jhunjhunu

4. District Collector (Recovery), Jhunjhunu

5. Sub Divisional Officer, Udaipurwati, District Jhunjhunu Rajasthan.

6. Tehsildar, Udaipurwati, District Jhunjhunu.

7. Nagar Palka Mandal, Udaipurwati Jhunjhunu Through Its Executive Officer.

----Respondents For Petitioner(s) : Mr. Ripu Daman Singh Naruka, Adv.

For Respondent(s) : Ms. Mahi Yadav, AAG with Ms. Chelsi Agarwal, AAAG HON'BLE MR. JUSTICE ARUN MONGA HON'BLE MR. JUSTICE ASHUTOSH KUMAR Order(Oral) 05/08/2026 Per: Arun Monga, J.

1. The petitioner, by way of the present writ petition, seeks quashing of the order dated 06.08.2025 and the notice dated 16.03.2026, whereby the Labour Cess has been determined and a consequential demand has been raised against it. The petitioner further prays that the respondents be directed to re-determine the labour Cess after affording an opportunity of hearing and, upon adjustment of the amount already deposited along with the applicable interest, grant reasonable time to deposit any shortfall, if found due, without levying any interest or penalty.

2. Briefly stated, the case of the petitioner is that it constructed a hospital. In connection therewith, it deposited a sum of Rs.45,000/- towards labour Cess with the Nagar Palika Mandal, Udaipurwati, District Jhunjhunu, vide Receipt No. 17 dated 06.09.2019. Thereafter, the Cess Assessment Officer-cum-Labour Welfare Officer, Jhunjhunu, passed an assessment order dated 06.08.2025. By the said order, the Labour Cess payable by the petitioner was determined and interest was levied thereon. Recovery proceedings were consequently initiated. These culminated in a notice dated 16.03.2026 issued under the Rajasthan Land Revenue Act. The notice sought recovery of a total amount of Rs.3,42,680/-, comprising Cess, interest and penalty. It is further the case of the petitioner that, after the assessment order, it deposited the balance Cess amount of Rs.67,724/- vide challan dated 06.03.2026.

3. Learned counsel for the petitioner submits that, while determining the Cess liability vide order dated 06.08.2025, no credit was given for the sum of Rs.45,000/- already deposited on 06.09.2019 with the Nagar Palika Mandal, Udaipurwati. This fact was subsequently certified by the said authority vide certificates dated 17.04.2026 and 22.04.2026. The said amount was thereafter remitted to the Labour Welfare Officer, Jhunjhunu, through Demand Draft dated 07.05.2026. It is, therefore, contended that the impugned assessment order dated 06.08.2025 and the consequential recovery notice dated 16.03.2026 levy interest and penalty without granting adjustment of the amount already deposited. To that extent, they are stated to be arbitrary and contrary to the provisions of the Building and Other Construction Workers' Welfare Cess Act, 1996 and the Rules of 1998, and are thus liable to be set aside.

4. Per contra, learned counsel for the respondents, appearing on advance service, submits that the deposit of Cess, to be valid in law, must be made with the competent authority prescribed under the Act of 1996 and the Rules of 1998, namely, the office of the Labour Commissioner. Admittedly, the petitioner did not deposit the requisite Cess with the said authority. The liability, therefore, remained undischarged in the eyes of law. In these circumstances, the impugned notice dated 16.03.2026 (Annexure-7) was rightly issued for recovery of the principal amount