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2011 (11) TMI 405 - SC - Indian LawsConstitutional validity of the Cess Act - "Tax versus Fee" - The High Court has held that The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (for short “the BOCW Act”); The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Central Rules, 1998, (for short the “1998 Central Rules”); The Building and Other Construction Workers Welfare Cess Act, 1996 (for short “the Cess Act”) and The Building and Other Construction Workers Welfare Cess Rules, 1998 (for short “the Cess Rules”) are constitutionally valid and within the competence of the Parliament as the levy under the impugned enactments is a “fee”, referable to Entry 97 of List-I of the Seventh Schedule of the Constitution of India. Held that:- the inevitable conclusion is that in the instant case there does exist a reasonable nexus between the payer of the Cess and the services rendered for that industry and therefore, the said levy cannot be assailed on the ground that being in the nature of a ‘tax’, it was beyond the legislative competence of Parliament. The levy by the impugned Act is in effect a ‘fee’ and not a ‘tax’ - Decided in favor of revenue
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