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2018 (11) TMI 889 - HC - GSTDeduction of GST and service tax from salary - Exploitation of the workmen by the State Government as well as local bodies - upgradation of honorarium/salary component from time to time as per the labour index - Held that:- The State must act like a Modal employer. Something which cannot be done directly cannot be permitted to be done indirectly. The agreement entered into between the UPNL and its employees is unconstitutional. Thus, violative of Articles 14 and 16 of the Constitution of India. The employees working through agency of UPNL, deployed by the State Government and local bodies are entitled to at least minimum of pay-scale, which is being paid to their counterparts on the principle of “Equal Pay for Equal Work.” The employees sponsored through UPNL are working without being regularized for decades together. It amounts to begaar. In the instant case also, the arrangement made by the State Government through UPNL is a sham. The Principal Employer is State Government - The action of the State Government of not regularizing the employees sponsored through agency of UPNL and to deny them minimum of pay-scale including dearness allowance is arbitrary and unreasonable. The State Government is directed to regularize the employees sponsored through UPNL in a phased manner within a period of one year as per regularization schemes framed from time to time - The State Government is directed to ensure that the employees sponsored by UPNL get minimum of payscale with dearness allowance along with arrears to be paid within a period of six months from today - The respondents are directed not to deduct any GST or Service Tax from the salary of the employees sponsored by UPNL - petition disposed off.
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