Case Note & Summary
The appellant, M/s. Primal Projects Limited, a company engaged in constructing and developing IT parks in Special Economic Zones (SEZ), challenged the order of the learned Single Judge who declined to interfere with the State Government's order dated 29.10.2009 withdrawing the exemption granted earlier in respect of 1% of Labour Welfare Cess on construction cost incurred by a developer/co-developer under the State Policy for Special Economic Zones – 2009. The appellant had been allotted land by the State Authority for development of industries and its project was approved by the State High Level Committee. The appellant availed the benefit of the exemption. The State Government, however, withdrew the exemption. The appellant filed a writ petition which was dismissed by the learned Single Judge. The Division Bench of the High Court of Karnataka, in this appeal, held that the exemption was a concession and could be withdrawn by the Government, and the appellant had no vested right to its continuation. The court dismissed the appeal, upholding the order of the learned Single Judge.
Headnote
A) Labour Law - Labour Welfare Cess - Exemption - Withdrawal - The State Government granted exemption from 1% Labour Welfare Cess on construction cost for SEZ developers under the State Policy for Special Economic Zones – 2009. Subsequently, the Government withdrew the exemption by order dated 29.10.2009. The appellant challenged the withdrawal. Held that the exemption was a concession and could be withdrawn by the Government, and the appellant had no vested right to its continuation. (Paras 1-2)
Issue of Consideration
Whether the State Government could withdraw the exemption granted in respect of 1% Labour Welfare Cess on construction cost incurred by a developer/co-developer under the State Policy for Special Economic Zones – 2009.
Final Decision
The appeal is dismissed. The order of the learned Single Judge is upheld.
Law Points
- Labour Welfare Cess
- Exemption
- Withdrawal
- Vested Right
- Promissory Estoppel
- Special Economic Zone Policy
Case Details
2013 LawText (KAR) (03) 31
Writ Appeal No.8413/2012(T-Res)
Sri.S.P.Shankar, Sr.Adv. for Smt.Mamata G. Kulkarni, Adv.
M/s. Primal Projects Limited
Union of India, State of Karnataka, Karnataka Industrial Area Development Board
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Nature of Litigation
Writ appeal against order of learned Single Judge declining to interfere with withdrawal of exemption from Labour Welfare Cess.
Remedy Sought
Setting aside of the order dated 10.10.2012 in Writ Petition No.22365/2010 and the order dated 29.10.2009 withdrawing exemption.
Filing Reason
The appellant challenged the withdrawal of exemption from 1% Labour Welfare Cess on construction cost.
Previous Decisions
Learned Single Judge dismissed the writ petition on 10.10.2012.
Issues
Whether the State Government could withdraw the exemption granted in respect of 1% Labour Welfare Cess on construction cost incurred by a developer/co-developer under the State Policy for Special Economic Zones – 2009.
Submissions/Arguments
The appellant argued that the exemption was a vested right and could not be withdrawn.
The respondents contended that the exemption was a concession and could be withdrawn by the Government.
Ratio Decidendi
The exemption was a concession and could be withdrawn by the Government; the appellant had no vested right to its continuation.
Judgment Excerpts
This appeal is filed challenging the order passed by the learned Single Judge, who declined to interfere with the order of the State Government dated 29.10.2009 withdrawing the exemption granted earlier in respect of 1% of Labour Welfare Cess on construction cost incurred by a developer/Co-developer under 'State Policy for Special Economic Zones – 2009'.
Procedural History
The appellant filed a writ petition (No.22365/2010) challenging the withdrawal of exemption. The learned Single Judge dismissed the writ petition on 10.10.2012. The appellant then filed this writ appeal under Section 4 of the Karnataka High Court Act.
Acts & Sections
- Karnataka High Court Act: Section 4
