IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 29TH MAY 2008 / 8TH JYAISHTA 1930 WP(C).No. 15338 of 2004(A) -------------------------- PETITIONER: ------------ SIVAJI JAGANATHAN, MANAGING DIRECTOR, SIVAJI HI-TECH BUILDERS PVT.LTD., JAWAHAR NAGAR, THIRUVANANTHAPURAM-41. BY ADV. SRI.M.BALAGOVINDAN SRI.R.JAGADISH KUMAR RESPONDENTS: ------------- 1. ASSESSING OFFICER, OFFICE OF THE DISTRICT LABOUR OFFICER, THIRUVANANTHAPURAM. 2. KERALA BUILDING AND OTHER CONSTRUCTIONS WORKERS WELFARE BOARD REPRESENTED BY ITS SECRETARY, KERALAL BUILDING AND OTHER CONSTRUCTIONS WORKERS WELFARE BOARD OFFICE, THIRUVANANTHAPURAM. BY ADV. SRI.C.R.SYAMKUMAR, SC, KCWWF BOARD FOR R2 GP. SRI. P.N. SANTHOSH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 29/05/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 15338 of 2004(A) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: SHOW CAUSE NOTICE ISSUED TO THE PETITIONER ON 21.11.2002. EXT.P2: DEMAND NOTICE ISSUED BY THE ASSESSING OFFICER, DTD. 26.4.2004. EXT.P3 SERIES: CHEQUES AND RECEIPTS EVIDENCING the REMITTANCE OF AMOUNT TO THE 2ND RESPONDENT. RESPONDENT'S EXHIBITS: NIL. ....... // TRUE COPY // P.A TO JUDGE. S.SIRI JAGAN, J = = = = = = = = = = = = = = = = W.P.(C).No. 15338 OF 2004 = = = = = = = = = = = = = Dated this the 29th day of May, 2008. J U D G M E N T The petitioner is an establishment covered under the Building and Other Construction Workers' Welfare Cess Act, 1996. Proceedings were initiated against the petitioner for recovery of Cess under the Act. An amount of Rs. 2,58,718/- was assessed as Cess payable by the petitioner. Initially, the petitioner did not pay the same. Revenue Recovery proceedings were initiated by Ext.P1. Thereafter, the petitioner paid the amount. Consequently, there was a delay in payment of the contributions. Therefore by Ext.P2, the assessing officer directed the petitioner to pay interest also on the amount for the period of delay in payment of the same. The petitioner is challenging Ext.P2 in this writ petition. 2. The petitioner would contend that he is not liable to pay interest since pursuant to the demand he had paid the amount. W.P.(C).No. 15338 OF 2004 2 3. The petitioner could not effectively dispute that there was delay in payment. The assessment order was dated 5.9.2002. As evident from Ext.P3 series of demand drafts, it is clear that payment was on various dates between 2.12.2002 and 29.4.2003. That being so, evidently, there was delay in payment of amounts due under the Act. Section 8 of the Act stipulates as follows: 8. Interest payable on delay in payment of cess- “if any employer fails to pay any amount of cess payable under Section 3 within the time specified in the order of assessment, such employer shall be liable to pay interest on the amount to be paid at the rate of two per cent for every month or part of a month comprised in the period from the date on which such payment is due till such amount is actually paid”. Therefore payment of interest for the delay in payment of Cess under the Act is statutory. There is no provision for waiving that interest. Therefore the petitioner cannot now validly challenge the demand for interest for the delay in payment of the Cess as assessed, since the same is statutory. Hence I do not find any merit in the challenge against the demand for interest. However, learned counsel for the petitioner makes a fervent plea that the W.P.(C).No. 15338 OF 2004 3 petitioner may be permitted to pay the amount demanded in installments. Taking a lenient view, the petitioner is permitted to pay the amount in six equal monthly installments starting from 15.6.2008. Subsequent installments shall be paid on the first working day after the 14th day of every succeeding month. If the petitioner pays the installments in time without fail, further coercive recovery proceedings shall be kept in abeyance. However, if the petitioner commits default in payment of any one installments, it would be open to the respondents to continue the proceedings to recover the same in a lump sum without having to issue any fresh notice or proceedings in that regard. S.SIRI JAGAN, JUDGE bkn/-