GULZAR AHMAD SHEIKH Vs. UNION OF INDIA

JUDGEMENT

(1.) In this petition, the petitioner has challenged vires of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (for brevity 'Workers Act 1996') and the Building and Other Construction Workers Welfare Cess Act, 1996 (for brevity 'Cess Act, 1996') alongwith the rules framed therein.

(2.) It is contended that so far the Cess Act, 1996 is concerned, the same is traceable to Entry 97 of list I of the seventh schedule of the Constitution of India which applies to the State of J&K with certain modifications. Other than the specific matters, as indicated in the Constitution (Application to J&K) 2nd amendment order, 1972, other residuary powers available to the Union Government for legislating qua the State of J&K are not available.

(3.) Learned senior counsel appearing for the petitioner submits that cess levied under the Cess Act, 1996 is a necessary exaction of money for a specific purpose and, therefore, tax. He further submits that there is no entry in the Union list as applicable to the State of J&K under which such legislation can be enacted. He has also challenged the procedure adopted by the respondent no.5-Assessing Officer in making the assessment and raising the demand of cess.