The Allahabad High Court dismissed the plea of Mohammad Ali Jauhar University challenging penalty amounting to Rs 2.72 crore and cess amounting to Rs 1.36 crore on the grounds that the petitioner has an alternate remedy of filing an appeal against the order imposing cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996.
The petitioner, Maulana Mohammad Ali Jauhar Trust through its Chairman and Mohammad Ali Jauhar University through its Registrar, together have challenged an order of the Cess Assessment Officer, the Building and Other Construction Workers’ Welfare Cess Act, 1996, Rampur, assessing cess under the Act last mentioned, relating to buildings constructed for the University, detailed in the order.
The cess, assessed by the order last mentioned, is a sum of Rs.1,36,37,000 only, determined on a total cost of construction in the sum of Rs.147.20 crores. The impugned order directs the University to deposit the amount of cess levied within 15 days of service thereof.
The trust argued that the order against the University was passed in violation of the principles of natural justice as no opportunity was granted to the petitioner to present his case. It would be a case of consideration of adverse material in violation of the first principle of natural justice, Hasnain in court.
On the other hand, Additional advocate general Manish Goyal, representing the state government, argued the petitioner could file an appeal against the cess imposed.
The single-judge bench of Justice J.J. Munir said that there is a complete remedy under the Cess Act available to the petitioner, which is a special and a fiscal statute. That remedy, in the opinion of this court, ought to be availed by the University, which, it cannot be permitted to bypass, by invoking this court’s jurisdiction, under Article 226 of the Constitution.
The court held that anything said in this judgment shall not be construed as an expression on the merits of the case, which shall remain open to be determined by the Statutory Appellate Authority, if the University chooses to appeal, under the provisions of the Cess Act.
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