SUZLON ENERGY LIMITED Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) In this petition filed under Article 226 of the Constitution, the petitioners have challenged the legality, validity and propriety of order dated 12/12/2019 passed by the competent authority in exercise of power u/S.3(1) of The Building and Other Construction Workers' Welfare Cess Act, 1996 (for short "Cess Act").

(2.) The stand of petitioners is that although The Building and Other Construction Workers (Regulations of Employment and Conditions of Service) Act, 1996 (for short "Building Act") and Cess Act are applicable to the petitioners establishment, the competent authority has assessed the Cess beyond the scope of charging Section. Thus, he not only acted beyond the touch stone of charging Section, authority has completely failed to see the legislative changes and provision relating to exclusion while passing the impugned order. The authority was under a solemn obligation to examine the legislative changes and scope of charging Section while passing the impugned order. Since he has failed to take into account both the aforesaid aspects, the impugned order can be termed as arbitrary and without jurisdiction.

(3.) To elaborate, Shri Amit Agrawal, learned Sr.Counsel submits that the petitioner No.1 is engaged in the business of manufacturing and supplying of various parts of wind mills to its customers including but not limited to blade, tower, transformer, nacelle etc. The petitioner No.2 company is engaged in the business of procurement of land and development of wind park projects. To the extent, petitioners have undertaken the civil construction work, the petitioners are liable to pay the cess as per the Cess Act and the Rules made thereunder. The petitioners in fact calculated and paid the cess arising out of the construction work. In the impugned order, the competent authority has included the cost of wind turbine, generator and electronic apparatus while calculating/determining the cess. This runs contrary to the provisions of the Cess Act and the Rules.