R N PARAMESHWARAPPA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In this writ petition, the petitioner is seeking for a direction to the respondents not to deduct the Labour Welfare Cess from the bills of the petitioner unless it is included in the estimate of the work or in the tender notification and further to direct the respondents to refund the Labour Welfare Cess which is already collected from the bills of the petitioner as per Annexures-H, J and K.

(2.) The petitioner is a Class-I Civil Contractor. He has undertaken construction work in respondent's departments. As per the provisions of the Building and Other Construction Workers' Welfare Cess Act, 1996 (for short "the Cess Act"), the respondents have collected the cess from the bills of the petitioner. Being aggrieved by the same, the petitioner has approached this Court.

(3.) Sri.Basavarajaiah, the learned counsel for the petitioner submits that as per the provisions of Section 3(2) of the Cess Act, the respondents have to collect the cess from the employer and not from the petitioner-contractor. He further contented that as per the provisions of Section 3(2) of the Cess Act and Government Order vide Annexure-R1 and corrigendum dated 28.2.2007, cess has to be deducted at the time of approval of construction work. If the cess is not deducted, it cannot be in the running bill. Hence, he sought for allowing the petition.