APHC010001832025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] MONDAY ,THE THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 1683/2025 Between: Godrej Agrovet Limited ...PETITIONER AND The State Of Ap and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. CKR ASSOCIATES Counsel for the Respondent(S): 1. GP FOR LABOUR The Court made the following: 2 THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 1683/2025 ORDER: This writ petition is filed under Article 226 of the Constitution of the India seeking the following reliefs:- “to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the impugned Assessment Order passed by respondent No.2 vide Rc.No.D-C/2955-1/2015, dated 10.04.2024 directing the Petitioner company to pay a sum of Rs.38,43,924/- towards the balance payment with respect to the Building and other Construction Workers Welfare Cess computed @ 1% percent on the cost of construction as per the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996 as arbitrary, irrational, illegal, without jurisdiction, contrary to provisions of the Building and Other Construction Workers Welfare Cess Act, 1996 and Rules, 1998, principles of natural justice besides being violative of Articles 14 and 19(1)(g) of the Constitution of India and consequently set aside the same and pass such other order. 2. Heard the learned counsel for the petitioner and the learned Government Pleader for the respondents. 3. Learned counsel for the petitioner submits that the 2nd respondent issued a notice bearing No.15.09.2015 stating that the estimated cost for construction was Rs.38,00,00,000/- and 1% on the said amount is to be paid towards the cess amount under the Building and Other Construction Workers Act, 1996. The said notice was issued basing on the alert notice issued by the Vigilance Department dated 25.03.2015. Later, the petitioner paid an amount 3 of Rs.5,00,000/- by drawing a cheque in favour of the Andhra Pradesh Building & Other Construction Workers Welfare Board. 4. Learned counsel for the petitioner further submits that after lapse of six years, the 2nd respondent issued another notice dated 11.08.2021 demanding the petitioner to pay the balance cess amount of Rs.33,00,000/-. In reply, the petitioner addressed a letter dated 06.11.2023 informing that the petitioner company has incurred a total expenditure of Rs.16,63,92,520/- towards civil construction and 1% of cess calculated on the above said expenditure amounts to Rs.16,63,926/-. He further submits that the petitioner company paid an amount of Rs.5,00,000/- on 25.11.2015 and Rs.11,63,926/- on 03.11.2023 in total Rs.16,63,926/-. Without considering the same, the 2nd respondent issued the impugned assessment order dated 10.04.2024 directing the petitioner to pay the balance cess amount of Rs.38,43,924/- after deducting amount already paid i.e., Rs.16,63,926/- computed @ 1% on Rs.55,07,85,005/- which was the estimated cost of construction. 5. On the other hand, learned Government Pleader appearing for the respondents submits that, as per Section 11 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, a statutory alternative remedy by way of appeal provision is available for the petitioner to approach the 4 concerned Appellate Authority to assail the said assessment order of the 2nd respondent dated 10.04.2024. 6. In view of the above said facts and circumstances and upon considering the rival submissions made, it is to be seen that the impugned assessment order dated 10.04.2024 is solely based upon the observation that the petitioner failed to furnish the Form-I returns and failed to pay the cess amount as communicated by the Joint Commissioner of Labour, Zone-II, Eluru vide letter/proceedings dated 15.09.2015. It also appears that the impugned order does not disclose about conducting any detailed enquiry and giving due opportunity to the petitioner to submit relevant documents in support of its claim. Further as per the calculation of the petitioner, the petitioner is liable to pay an amount of Rs.16,63,926/- and accordingly the said amount was already been paid and the same was also admitted. As such, prima facie it is established that the necessary exemptions are not considered in the light of the judgment of the Hon’ble Apex Court as reported in 2021 (6) SCC 15 and as there is a calculation difference in gross with respect to the quantum of the cess for the petitioner and the respondent authorities concerned, it is required to be reconsidered afresh in detail. For which, the matter is remanded to the 2nd respondent to pass fresh assessment order by conducting the de novo enquiry giving due opportunity to the petitioner for submission of all the necessary 5 documents in support of its claim and to meet the said purpose, the impugned assessment order of the 2nd respondent dated 10.04.2024 is hereby set aside. Further the 2nd respondent shall proceed with the fresh enquiry to pass the fresh assessment orders if any strictly in accordance with law without reference to the present impunged assessment order. 7. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. As a sequel miscellaneous application, pending, if any, shall also stand closed. ________________________________ VENKATESWARLU NIMMAGADDA, J 03.02.2025 TTPPSS 6 200 HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 1683 of 2025 03.02.2025 TTPPSS