IN THE SUPREME COURT OF INDIA
CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) No. ______ OF 2006
IN THE MATTER OF: - |
NATIONAL CAMPAIGN COMMITTEE FOR CENTRAL
LEGISLATION ON CONSTRUCTION LABOUR (NCC-CL)
THROUGH ITS CO-ORDINATOR,
SUBASH BHATNAGAR,
B-19, SUBHAVANA NIKETAN,
PRITAM PURA, |
| DELHI-34. |
…PETITIONER |
| VERSUS |
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toilets, canteens and so on. BUILDING OR OTHER CONSTRUCTION WORKERS WELFARE CESS ACT 1996 |
| 31. |
The purpose and object of the Building or Other Construction Workers Welfare Cess Act 1996 is to provide for the levy and collection of a Cess on the cost of construction incurred by the employer with a view to augmenting the resources of the Building or Other Construction Workers Welfare Boards constituted under the said Act. |
| 32. |
Under Section 3 of the Cess Act, there shall be levied and collected a cess at a rate not exceeding 2% but not less than 1% of the cost of construction incurred by an employer through a local authority, where an approval of such local authority is required. The proceeds of the cess collected is to paid to the board. |
| 33. |
Under Section 5 of the Cess Act, the officer or the authority is to make an inquiry if he thinks fit into the cess particulars stated in the returns and by orders assess the amount. If the employer does not furnish the returns and records to the authority he may after an inquiry assess the cess payable by the authority. |
| 34. |
If the cess amount payable under Section 3 of the Cess Act is not paid such employer is liable to pay interest on the amount at the rate of 2% per month or part of the month under Section 8 of the Cess Act. If the Cess amount is not paid on the date specified as mentioned in the order of assessment by the employer, it is deemed to be in arrears and the authority may impose a penalty not exceeding the amount of Cess. Incase of any amount due under the Act including any interest or penalty, it may be recovered in the same manner as an arrear of land revenue. |
| 35. |
Under the Cess Act and Rules, the cess levied under Sec 3(1) shall be paid by an employer within 30 days of completion of the construction project or within 30 days of the date on which assessment of cess payable is finalized which ever is earlier to the Cess Collector. The assessment of cess shall be made by the Assessing officer on receipt of information in Form 1 as per Rule 7 who shall pass an order specifying the amount of cess payable. |
| 36. |
Though the Act and the rules had been enacted by the Central Government in 1996, only two States, Kerala and Tamil Nadu have enacted near competent State legislations. Kerala implemented the Central Act in place of its State Act. Under the State Act only workers from the State of Kerala were registered. But now the Central Act being implemented, the State is continuing with the earlier practice of registering workers from Kerala and denying the benefits to workers from other States whereas the workers from other States should have been registered under the Central Act and Rules. |
| 37. |
Even 9 years after the enactment of the two laws by the Union of India, only nine States and Union Territory of Pondichery have partially implemented. The nine States include Kerala, Tamil Nadu, Orissa, Uttaranchal, Andaman & Nicobar, Delhi, Gujarat, Madhya Pradesh, and West Bengal. Kerala have adopted the Central Act, but have implemented only the welfare rules and the rules for safety and other provisions have not been implemented and enforced. In Kerala the Board is not registering migrant construction workers from adjacent States nor has it been able to collect cess from Central Government construction sites, hence there is a large amount to be collected as cess. |
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