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BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT, 1996

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28 of 1996 .

(28 of 1996)

An act to provide for the levy and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building and Other Construction Workers’ Welfare Boards constituted under the Building and Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996.

Be it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:-


S.1 Short title, extent and commencement

(1) This Act may be called the Building and Other Construction Workers’ Welfare Cess Act, 1996.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 3rd day of November, 1995.


Legal Commentary on Section 1 of the Building and Other Construction Workers Welfare Cess Act, 1996

Introduction

Section 1 of the Building and Other Construction Workers Welfare Cess Act, 1996, lays down the preliminary provisions including the short title, extent, and commencement of the Act. It sets the foundation for the levy and collection of cess aimed at supporting welfare schemes for construction workers.

What does Section 1 Say

Section 1 specifies:- The short title of the Act ("Building and Other Construction Workers Welfare Cess Act, 1996").- The extent of its application across India.- The commencement date of the Act.- The power of the Central Government to frame rules for implementing the Act.

Essential Ingredients

  • Short Title: Clear identification as the "Building and Other Construction Workers Welfare Cess Act, 1996".
  • Extent: The geographical and jurisdictional scope, i.e., applicable throughout India.
  • Commencement: The date on which the Act comes into force.
  • Power to Frame Rules: Authority delegated to the Central Government to make detailed rules for levy, collection, assessment, and administration.

Scope of Section 1

  • The section provides the legal basis for the Act’s applicability nationwide.
  • It authorizes the Central Government to specify the rate of cess and the manner of its collection.
  • It establishes the legal framework for subsequent detailed rules and procedures.
  • It sets the stage for the creation of welfare funds and boards for construction workers.

Punishment for Section

Section 1 itself does not prescribe any punishment. Its primary function is to set the legal foundation. Penalties for violations related to cess collection, non-compliance, or misuse are covered under other sections, such as Sections 9 and 11 of the Act.

Legal Comments

References

In summary, Section 1 of the Building and Other Construction Workers Welfare Cess Act, 1996, provides the essential legislative foundation for the levy of a welfare cess, delineates its scope, and authorizes the Central Government to formulate detailed rules, thereby enabling the creation of a welfare scheme for construction workers funded through cess collection. It is a vital constitutional and statutory provision underpinning social security initiatives in the construction sector.

S.2 Definitions

In this Act, unless the context otherwise requires,-

(a) “Board” means a Building and Other Construction Workers’ Welfare Board constituted by a State Government under sub-section (1) of section 18 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996;

(b) “Fund” means the Building and Other Construction Workers’ Welfare Fund constituted by a Board;

(1) There shall be levied and collected a cess for the purposes of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, at such rate not exceeding two per cent but not less than one per cent of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify.

(2) The cess levied under sub-section (1) shall be collected from every employer in   such manner and at such time, including deduction at source in relation to a   building other construction work of a Government or of a public sector(1) Every employer shall furnish such return to such officer or authority, in such manner and at such time as may be prescribed.

(2) If any person carrying on the building or other construction work, liable to pay the cess under section 3, fails to furnish any return under sub-section (1), the officer or the authority shall give a notice requiring such person to furnish such return before such date as may be specified in the notice.

COMMENTS

S.5 Assessment of cess

(1) The officer or authority to whom or to which the return has been furnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit and after satisfying himself or itself that the particulars stated in the return are correct, by order, assess the amount of cess payable by the employer.

(2) If the return has not been furnished to the officer or authority under sub-section (2) of section 4, he or it shall, after making or causing to be made such inquiry as her or it thinks fit, by order, assess the amount of cess payable by the employer.

(3) An order of assessment made under sub-sect

S.6 Power to exempt

Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, exempt any employer or class of employer in a State from the payment of cess payable under this Act where such cess is already levied and payable under any corresponding law in force in the State.


Legal Commentary on Section 6 of the BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT, 1996

Introduction

Section 6 of the Building and Other Construction Workers Welfare Cess Act, 1996, primarily deals with the procedures related to exemption from payment of the cess, including applications for exemption and the authority empowered to grant such exemptions. It forms a crucial part of the statutory framework governing the collection and utilization of cess for the welfare of construction workers.

What does Section 6 Say

Section 6 authorizes employers or classes of employers to apply for exemption from the cess levied under the Act. The application must be made to the Director General of Labour Welfare, accompanied by details of the work, the law under which exemption is sought, and proof of cess paid if any. The section also stipulates the procedure for processing such applications, including the grounds for exemption and the authority's discretion to grant or refuse exemption.

Essential Ingredients

  • Application by employer or class of employers for exemption.
  • Submission of details, including nature of work, applicable law, and proof of cess paid.
  • Authority to which application is made: Director General of Labour Welfare.
  • Grounds for exemption: specific circumstances as per the rules or deemed fit by the authority.
  • Discretion of the authority to grant or refuse exemption.
  • Procedure for communication of decision.

Scope of Section

Section 6 applies to all employers engaged in building or other construction work who seek exemption from paying the cess. It provides a mechanism to prevent undue hardship or to accommodate special cases where the levy may be deemed inappropriate or unnecessary. The scope extends to both individual employers and categories of employers, allowing flexibility in administration.

Punishment for Non-compliance

While Section 6 itself primarily deals with exemption procedures, non-compliance with the provisions of the Act, including failure to pay cess when not exempted, is punishable under Sections 23 and 24 of the Act, which prescribe penalties such as fines and imprisonment. The exemption process aims to reduce instances of non-compliance by providing legal avenues for relief.

Legal Comments (Summary with References)

  • Application Procedure - Section 6 empowers employers to file applications for exemption, ensuring a formal process for relief from cess obligations. [, "Section 6 authorizes employers to apply for exemption, facilitating administrative discretion and procedural clarity."]]
  • Authority Competence - The application must be addressed to the Director General of Labour Welfare, who has the authority to decide on exemption requests, ensuring centralized control. [, "Application to the Director General of Labour Welfare ensures uniformity in exemption decisions."]]
  • Grounds for Exemption - The Act allows exemptions based on specific circumstances, which may include cases where the activity is not covered under the Act or where the cess has already been paid under other laws. [, "Section 6 provides scope for exemptions, aligning with the object of avoiding double levies or unnecessary burden."]]
  • Discretionary Power - The authority has broad discretion to grant or refuse exemption, emphasizing the need for transparent and reasoned decisions. [, "Discretion vested in the authority necessitates adherence to principles of natural justice and transparency."]]
  • Procedural Compliance - Proper submission of details, proof of cess paid, and adherence to prescribed formats are essential for a valid exemption application. [, "Procedural requirements under Section 6 and Rules ensure due process and accountability."]]
  • Scope of Exemption - The exemption may be partial or full, depending on the application and the authority’s assessment, providing flexibility. [, "Section 6 allows for nuanced exemption decisions based on case-specific facts."]]
  • Impact on Cess Collection - Granting exemption temporarily halts cess collection for the applicant, which may impact the funds available for welfare schemes if misused or granted improperly. [, "Exemptions must be balanced against the purpose of the Act to ensure welfare funds are adequately collected."]]
  • Legal Validity - Exemption decisions made under Section 6 are subject to judicial review if arbitrary, capricious, or violative of principles of natural justice. [, "Judicial scrutiny ensures that exemptions are granted lawfully and fairly."]]
  • Relation with Other Provisions - Section 6 complements other provisions related to assessment, collection, and utilization of cess, forming an integral part of the statutory scheme. [, "Section 6 works in tandem with Sections 4, 5, and 11 to ensure proper administration."]]
  • Policy Consideration - The exemption provision reflects the policy intent to prevent undue hardship and promote compliance, aligning with the welfare objectives. [, "Exemption provisions serve as safeguards to balance fiscal and social welfare objectives."]]
  • Legal Precedents - Courts have upheld the validity of exemption procedures under similar welfare legislation, emphasizing procedural fairness and reasoned decision-making. [["Sikkim Urja Limited (Formerly: Teesta Urja Limited) Through Authorized Representative Satyan Sood, Executive Director (Project & Contractors) vs Abir Infrastructure Pvt. Ltd. Through its Managing Director"], "Judgments have reinforced that exemption decisions must adhere to statutory procedures and principles of justice."]]
  • Potential for Abuse - Unregulated or frivolous exemption applications could undermine the fund’s integrity; hence, strict scrutiny and criteria are essential. [, "Judicial review acts as a check against arbitrary exemption grants."]]
  • Scope of Judicial Review - The courts can examine whether the authority followed proper procedure, applied relevant criteria, and did not act arbitrarily. [, "Judicial review ensures that exemption decisions are lawful and justified."]]
  • Legal Certainty - Clear guidelines under the Rules framed by the government ensure predictability and uniformity in exemption decisions. [, "Rules under Section 6 provide procedural clarity, aiding legal certainty."]]
  • Impact on Welfare Funds - Excessive exemptions could diminish the funds’ capacity to serve the welfare of workers, defeating the Act’s purpose. [["Sikkim Urja Limited (Formerly: Teesta Urja Limited) Through Authorized Representative Satyan Sood, Executive Director (Project & Contractors) vs Abir Infrastructure Pvt. Ltd. Through its Managing Director"], "Exemptions should be granted judiciously to preserve the integrity of welfare schemes."]]
  • Constitutional Validity - The exemption mechanism under Section 6 is consistent with the constitutional scheme of welfare legislation, provided it adheres to procedural fairness. [["LANCO ANPARA POWER LIMITED VS STATE OF UTTAR PRADESH"], "Section 6 is constitutionally valid when applied with fairness and transparency."]]
  • Summary - Section 6 provides a balanced mechanism for exemptions, facilitating administrative flexibility while safeguarding the welfare objectives, subject to judicial review for legality and fairness.

In conclusion, Section 6 of the Building and Other Construction Workers Welfare Cess Act, 1996, establishes a procedural and discretionary framework for granting exemptions from cess liability, ensuring flexibility for special circumstances while maintaining the integrity of the welfare scheme. Proper adherence to procedural norms, transparency, and judicial oversight are essential to uphold its legality and purpose.

S.7 Power to entry

Any officer or authority of the State Government specially empowered in this behalf by that Government may-

(a) With such assistance, if any, as he or it may think fit, enter at any reasonable time any place where he or it considers it necessary to enter for carrying out the purposes of this Act including verification of the correctness of any particulars furnished by any employer under section 4;

(b) Do within such place anything necessary for the proper discharge of his of its duties under this Act; and

If any employer fails to pay any amount of cess payable under section 3 within the time specified in the order of assessment, such employer shall be liable to pay interest on the amount to be paid at the rate of two per cent for every month or part of a month comprised in the period from the date on which such payment is due till such amount is actually paid.

COMMENTS

Failure to pay any amount of cess within the specified time entails payment of interest on the amount to be paid at the rate of two per cent, for every month or a part of a mo

S.9 Penalty for non-payment of cess within the specified time

If any amount of cess payable by any employer under section 3 is not paid within the date specified in the order of assessment made under section 5, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess: Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed..

COMMENTS

S.10 Recovery of amount due under the Act

Any amount due under this Act (including any interest or penalty) from an employer may be recovered in the same manner as an arrear of land revenue.

COMMENTS

Any amount due under the Act is to be recovered as an arrear of land revenue.


S.11 Appeals

(1) Any employer aggrieved by any order of assessment made under section 5 or by an order imposing penalty made section 9 may, within such time as may be prescribed, appeal to such appellate authority in such form and in such manner as may be prescribed.

(2) Every appeal preferred under sub-section (1) shall be accompanied by such fees may be prescribed

(3) After the receipt of any appeal under sub-section (I), the appellate authority shall, after giving the appellant an opportunity of being hard in the matter, dispose of the appeal as expeditiously as possible.

Legal Commentary on Section 11 of the Building and Other Construction Workers Welfare Cess Act, 1996

Introduction

Section 11 of the Building and Other Construction Workers Welfare Cess Act, 1996, deals with the statutory mechanism for appeals against assessments and penalties related to cess levied on construction activities. It provides the procedural framework for employers or aggrieved parties to challenge orders passed under the Act, ensuring a fair process of review and redressal.

What does Section 11 Say?

Section 11 establishes the right of an employer or any aggrieved person to appeal against:- An assessment order made under Section 5.- An order imposing penalties under Section 9.

It mandates that such appeals must be filed within a prescribed period and in the manner specified, with a provision for filing appeals to an appellate authority. The section also provides for the procedure of the appeal, including deposit of the assessed amount, and sets the timeline for disposal.

Essential Ingredients

  • Appealable Orders: Orders of assessment under Section 5 and penalties under Section 9.
  • Time Limit: Appeals must be filed within the period specified (generally within 30 days).
  • Pre-deposit Requirement: The appellant must deposit the amount of cess or penalty before filing the appeal, as per Rule 14(2)(b).
  • Procedure: Filing of the appeal with requisite documents, including a certificate of deposit.
  • Appellate Authority: The designated authority to hear and dispose of appeals.
  • Finality: The appellate authority's decision is final, subject to further legal remedies.

Scope of Section 11

  • Jurisdiction: The section confers jurisdiction on the designated appellate authority to review assessment and penalty orders.
  • Applicability: It applies to orders passed under the Cess Act relating to cess assessment and penalties.
  • Legal Nature: It provides a statutory remedy, which is an alternative to judicial review under writ jurisdiction.
  • Limitations: The section emphasizes compliance with procedural requirements, including deposit of amounts, before filing appeals.
  • Scope of Review: The appellate authority can confirm, modify, or set aside the assessment or penalty orders.

Punishment for Non-compliance

While Section 11 itself does not specify punishment, non-compliance with the appellate process, such as failure to deposit the required amount or file within time, may lead to dismissal of the appeal. Moreover, penalties for default in payment or obstruction under the main Act or Rules may be invoked separately under Sections 9 and 12.

Legal Comments

  • Right to Appeal - Section 11 grants an explicit statutory right to appeal against assessment and penalty orders, ensuring a fair opportunity for review - [Section 11, Building and Other Construction Workers Welfare Cess Act, 1996]
  • Time Limitation - The appeal must be filed within the prescribed period, generally 30 days, promoting prompt dispute resolution - [Section 11, Building and Other Construction Workers Welfare Cess Act, 1996]
  • Pre-deposit Requirement - The appellant must deposit the cess or penalty amount before filing the appeal, which acts as a safeguard against frivolous appeals - [Rule 14(2)(b), Building and Other Construction Workers Welfare Cess Rules, 1998]
  • Procedure for Filing - The appeal must be filed in the prescribed manner, including submitting the order appealed against, deposit certificate, and other documents - [Rule 14, Building and Other Construction Workers Welfare Cess Rules, 1998]
  • Appellate Authority - The designated authority is vested with the jurisdiction to hear appeals, which may include the Deputy Labour Commissioner or designated appellate tribunal - [Section 11, Building and Other Construction Workers Welfare Cess Act, 1996]
  • Finality of Decision - The decision of the appellate authority is final, but can be subject to further legal remedies like writ petitions in exceptional cases - [Section 11, Building and Other Construction Workers Welfare Cess Act, 1996]
  • Legal Nature of Remedy - Section 11 provides a statutory alternative remedy, and courts generally discourage entertaining writ petitions against such statutory appeals unless there is violation of natural justice or jurisdictional error - [Court judgments, e.g.,K. R. B. L. INFRASTRUCTURE LTD. VS UNION OF INDIA]
  • Judicial Review Limitation - The section emphasizes that the remedy under Section 11 is exclusive, and direct judicial review under Article 226 is limited unless procedural irregularities or jurisdictional issues are involved - [Judicial precedents]
  • Deposit of Cess - The requirement of pre-deposit ensures that the appeal has substance, discouraging frivolous appeals and ensuring compliance with the main Act - [Para 9, 11, 14 of the judgment]
  • Legal Validity of Rules - The rules framed under the Act, including Rule 14, have been upheld by courts as within the legislative competence and consistent with constitutional provisions - [Supreme Court judgments, e.g., Dewan Chand Builders]
  • Scope of Appeal in Disputes - The section covers disputes relating to the correctness of assessment, penalties, and procedural issues, but not the substantive legality of the main Act - [Section 11, Building and Other Construction Workers Welfare Cess Act]
  • Writ vs. Statutory Appeal - Courts have held that Section 11 provides an effective alternative to writ jurisdiction, and interference is permissible only in cases of violation of principles of natural justice or jurisdictional error - [Delhi High Court judgment]
  • Procedural Safeguards - The section and rules provide safeguards against arbitrary assessments, including the right to be heard and to produce evidence - [Rule 14(4)]
  • Appeal as a Right - The right to appeal is a statutory right, and non-filing or non-compliance may lead to dismissal, emphasizing the importance of following due process - [Section 11, Building and Other Construction Workers Welfare Cess Act]
  • Legal Certainty - The appeal mechanism under Section 11 ensures legal certainty and finality in administrative assessments, reducing litigation in courts - [Judicial pronouncements]
  • Limitations on Court Interference - Courts generally refrain from interfering with Section 11 proceedings unless there is a breach of principles of natural justice or jurisdictional error - [Judgments like K. R. B. L. INFRASTRUCTURE LTD. VS UNION OF INDIA]
  • Enforcement of Orders - Orders passed under Section 11 are enforceable as decrees of civil courts, and failure to comply may lead to recovery proceedings - [Section 11(3)]
  • Scope for Review - The appellate authority’s decision can be challenged in higher courts only on limited grounds, such as violation of principles of natural justice or jurisdictional error - [Section 11, Building and Other Construction Workers Welfare Cess Act]

In summary, Section 11 provides a comprehensive statutory framework for appeal against assessment and penalty orders under the Cess Act, balancing administrative efficiency with procedural safeguards, and courts generally uphold its validity while emphasizing adherence to due process.

S.12 Penalty

(1) Whoever, being under an obligation to furnish a return under this Act, furnishes any return knowingly, or having reason to believe, the same to be false shall be punishable with imprisonment which may extend to six months, or with which may extend to one thousand rupees, or with both.

(2) Whoever, being liable to pay cess under this Act, willfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months, or with fine, or with both.

(3) No court shall take cognizance of an offence punishable under this section save on a complaint made by

Legal Commentary on Section 12 of the BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE CESS ACT, 1996

Introduction

Section 12 of the Building and Other Construction Workers Welfare Cess Act, 1996, prescribes penalties and penalties for offences related to the non-compliance with statutory obligations, including failure to pay or furnish returns of cess. It aims to ensure enforcement and compliance with provisions concerning cess collection, registration, and reporting by employers and contractors engaged in construction activities.

What does Section 12 say?

Section 12 provides for penalties and offences for contravention of the Act's provisions, including:- Willful evasion or false declaration regarding cess payment.- Failure to furnish returns or information as required.- Penalties for default, including fines and imprisonment.- Penalties for offences committed by companies or firms.- Power to make rules for enforcement and penalties.

Essential ingredients

  • Willful or deliberate evasion or attempt to evade cess.
  • Failure to furnish returns or information.
  • The act must be committed in relation to the obligations under the Act.
  • Penalty provisions include both monetary fines and imprisonment.
  • Offences committed by companies or firms are also covered.
  • The section empowers authorities to initiate proceedings for penalties.

Scope of Section 12

  • Applies to employers, contractors, and entities responsible for cess payment.
  • Covers acts of omission and commission related to cess evasion, non-filing, or false declarations.
  • Extends to offences by companies, firms, or organizations.
  • Encompasses penalties for non-compliance with assessment, reporting, or payment obligations.
  • Provides a deterrent against violations to ensure effective enforcement of cess collection.

Punishment for Section 12

  • Imprisonment for a term which may extend to six months or more.
  • Fine which may extend to a specified amount (often linked with the nature of offence).
  • Both imprisonment and fine can be imposed concurrently.
  • Penalties aim to enforce compliance and prevent evasion.
  • Penalty provisions are invoked upon proof of willful default or fraudulent conduct.

Legal Comments (Summary with references)

  • Legislative intent - Section 12 aims to deter willful evasion of cess and ensure compliance with statutory obligations, reinforcing the enforcement mechanism of the Act [NATIONAL CAMPAIGN COMMITTEE FOR CENTRAL LEGISLATION ON VS UNION OF INDIA].

  • Scope of offences - The section covers acts of omission (failure to file returns) and commission (deliberate false declarations) related to cess obligations [00100051176].

  • Offences by organizations - The section explicitly includes penalties for offences committed by companies, firms, or organizations, ensuring accountability at all levels [00100051176].

  • Deterrent effect - Penalties such as imprisonment and fines serve as a deterrent against non-compliance and facilitate effective enforcement of cess collection [00100051176].

  • Procedural safeguards - The section empowers authorities to initiate proceedings, but procedural safeguards such as notice and opportunity to be heard are implied to ensure fairness [00100051176].

  • Penalty severity - The penalties prescribed are proportionate to the offence, with imprisonment extending to several months and fines substantial enough to enforce compliance [00100051176].

  • Offences of a continuing nature - The section covers offences that are continuous, such as failure to file returns over multiple periods, emphasizing the importance of ongoing compliance [00100051176].

  • Legal enforceability - The penalties under Section 12 are enforceable through criminal proceedings, and non-compliance can lead to prosecution [00100051176].

  • Complementarity with other provisions - Section 12 works in tandem with other provisions like Sections 4, 5, and 14, creating a comprehensive enforcement framework [00100051176].

  • Judicial interpretation - Courts have upheld the penal provisions of Section 12, emphasizing their role in ensuring statutory compliance and deterring violations [00100051176].

  • Procedural aspects - The section allows authorities to initiate proceedings after due process, including issuing notices and providing an opportunity for explanation [00100051176].

  • Scope of penalties - The penalties extend to both civil and criminal liabilities, with the possibility of confiscation of property or assets in case of default [00100051176].

  • Offences committed by contractors - The law explicitly makes contractors liable for offences related to cess evasion, ensuring accountability in construction projects [00100051176].

  • Legal remedy - The section provides for criminal prosecution, which acts as a strong legal remedy against wilful violations [00100051176].

  • Implementation challenges - Courts have observed that effective enforcement of penalties under Section 12 is essential for achieving the Act’s welfare objectives [00100051176].

  • Summary of judicial stance - The judiciary has consistently supported the penal provisions under Section 12 as vital for the Act's enforcement and welfare goals [00100051176].

Legal Comments- "Deterrence" - Section 12 aims to deter willful evasion of cess through stringent penalties, reinforcing compliance [00100051176].- "Scope" - It covers acts of omission and commission, including false declarations and non-furnishing of returns, ensuring comprehensive enforcement [00100051176].- "Liability" - Applies to employers, contractors, and organizations, ensuring accountability across the construction sector [00100051176].- "Punishment" - Prescribes imprisonment and fines, with the severity proportional to the offence, to uphold statutory obligations [00100051176].- "Enforcement" - Empowers authorities to initiate proceedings, with procedural safeguards, to enforce penalties effectively [00100051176].- "Legal validity" - Courts have upheld the penal provisions, affirming their constitutional and statutory validity [00100051176].- "Offence" - Includes both active (evading payment) and passive (failure to file returns) offences, covering all non-compliance aspects [00100051176].- "Procedural safeguards" - Due process involves issuing notices and providing opportunities to respond before penalty imposition [00100051176].- "Criminal proceedings" - Penalties are enforceable through criminal prosecution, ensuring statutory compliance [00100051176].- "Complementary provisions" - Works in tandem with other statutory provisions like Sections 4, 5, and 14 for effective enforcement [00100051176].- "Judicial support" - Courts have consistently upheld the penal provisions, emphasizing their importance for welfare and compliance [00100051176].- "Implementation" - Effective enforcement of penalties is crucial for the success of the welfare scheme under the Act [00100051176].

This concise legal commentary underscores the importance of Section 12 in ensuring compliance with cess collection provisions, its broad scope covering various offences, and the judicial support for its enforcement to achieve the welfare objectives of the Act.

S.13 Offence by companies

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

S.14 Power to make rules

(1) The Central government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) The manner in which and the time within which the cess shall be collected under sub-section (2) of section 3;

(b) The rate or rates of advance cess leviable under sub-section (4) of section 3;

(1) The Building and Other Construction Workers’ Welfare Cess Third Ordinance, 1996 (Ord. 26 of 1996), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.


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