(1.) Invoking the jurisdiction of this Court under Article 226 of the Constitution of India, the petitioners herein have filed this writ petition seeking appropriate writ or direction declaring Rule 3 of the Building and Other Construction Workers' Welfare Cess Rules, 1998 (for short, 'the Rules') read with Sec. 3 of the Building and Other Construction Workers' Welfare Cess Act, 1996 (for short, 'the Act') to the extent that it includes the cost of supply of equipment within the scope of the cost of construction of building and other construction work, as unconstitutional branding the same as arbitrary, unreasonable and violative of Articles 14 and 19(1)(g) of the Constitution of India.
(2.) The petitioner Company is involved in the execution of infrastructure projects. The petitioner Company has entered into agreements for the projects with respondent No.3 for the purpose of various turnkey projects in relation to diversion/modification works of 1 No 220 KV JSPL Line crossing MGR Rail corridor from NTPC Lara to Talaipalli Mines of respondent No.3. The petitioner Company and respondent No.3 have entered into number of agreements from 29/11/2018 to 4/1/2019 and in lieu of the aforesaid agreements, purchase orders have been placed by respondent No.3 and each order has been annexed with a document titled as "Scope of Work" reflecting that every purchase orders are limited only to supply of materials. While making payment, the amount of cess of 1% has been recovered in view of Sec. 3 of the Act read with Rule 3 of the Rules and respondent No.3 has deposited the same with respondent No.2.
(3.) It is the case of the petitioners that Sec. 3 of the Act says that 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 and therefore cess was not recoverable which has been recovered by respondent No.3 and deposited illegally and as such Rule 3 of the Rules read with Sec. 3 of the Act be declared unconstitutional and the amount of cess recovered be directed to be paid to the petitioners.