Background Facts
This ruling puts to rest the issue as to exigibility of projects
to cess under BOCW and Cess Act. There are number of proceedings
initiated by the Labor Department to levy cess on the EPC
companies, which will now be adjudicated with ease by the concerned
commissioners under the Cess Act. Further, the Writ Courts, before
whom a plethora of cases against the Cess Orders are pending, can
now decide matters in light of this judgement.
In light of this judgment, a Notification/Circular should now be
issued by the Employment and Labour Ministry to the concerned
Departments with a direction to drop all the pending assessment
proceedings where cess is alleged to be levied on the total project
costs instead of taking into account construction costs only.
