ORDER RELIEF SOUGHT BY THE PETITIONERS The petitioners are contractors with the respondents. They are engaged in executing the building and other construction works entrusted by the respondents under different agreements. They have filed this batch of writ petitions, assailing the orders issued by the Government of Andhra Pradesh through their Finance and Planning Department, in Memo No.4763/PFS, F8(A1)/07-1, dated 04.02.2008, directing the Director, Works and Accounts, to issue instructions to all PAOs/SPOs to effect recovery of amount @ 1% towards labour cess from all the contractors payments made from 26.06.2007, as illegal, arbitrary, violative of the provisions of Sections 4, 5 and 10 of Building and other Construction Workers’ Welfare Cess Act, 1996 (hereinafter referred to as ‘the Cess Act’) and violative of the principles of natural justice and, consequently to direct the respondents not to deduct 1% labour cess from the bills payable to the petitioners, raised by them in pursuance of the building and other constructions works executed by them under the respective agreements entered into by them with the respondents. PLEADINGS OF THE PETITIONERS 2. As stated supra, the petitioners are registered contractors with the respondents and are engaged in undertaking building and other construction works entrusted by the Government and their various Departments, under various agreements entered into by and between them. The petitioners, after executing the building and other construction works entrusted by the respondents, are raising bills from time to time, which were being promptly released by the respondents. While so, the Deputy Financial Advisor and E.O.D.S. to Government, has issued orders in Memo dated 04.02.2008, impugned in this batch of writ petitions, directing collection/recovery of amount @ 1% towards labour cess from all the contractors payments made from 26.06.2007. ARGUMENTS ADVANCED OF THE PETITIONERS 3. The learned counsel for the petitioners submitted that since the component of 1% labour cess was not included in the estimates of the agreements/contracts entered into by the petitioners with the respondents for undertaking building and other construction works, the respondents are not entitled to collect/recover the same from the bills payable to the petitioners. They submitted that on the basis of the orders issued by the Government in a Memo, the respondents are not entitled to collect/recover 1% labour cess from the bills of the petitioners, much less from a date prior to its issuance. They submitted that on the basis of the orders issued by the Government in a Memo, the respondents are not entitled to collect/recover 1% labour cess from the bills of the petitioners, much less from a date prior to its issuance. They submitted that since at the time of entering into agreements/contracts by the petitioners with the respondents, Welfare Boards, as provided under Section 18 of the Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 (hereinafter referred to as ‘the Workers Act’), were not constituted by the State of Andhra Pradesh, the respondents are not entitled to collect the 1% labour cess under the agreements/contracts entered into by the petitioners with the respondents, prior to the date of constitution of the Welfare Boards, and more so when the component of collection/recovery of 1% labour cess, was not included in the agreements. In support of their submission that an agreement cannot be uncertain and vague and it should be definite, placed reliance on the judgment of the apex Court in DDA v. Joint Action Committee, Allottee of SFS Flats (2008) 2 SCC 672 . They submitted that no notice whatsoever was issued by the respondents either seeking implementation of the Cess Act or before issuing the impugned Memo in terms of which, they are seeking to collect/recover 1% labour cess from a retrospective date, and as such, the impugned Memo issued by the Government suffers from the vice of violation of principles of natural justice. They submitted that, in fact, the provisions of Sections 4 and 5 of the Cess Act, do not provide for collection of 1% labour cess directly from the bills of the petitioner, and to collect the same, the respondents have to follow the procedure contemplated under the Cess Act, in that the impugned direction to recover 1% labour cess from the bills of the petitioners, did not precede with assessment, determination of liability and notice to show cause as to why the amount should not be collected/recovered, and therefore, the impugned action of the respondents in seeking to collect/recover 1% labour cess from the bills of the petitioners, is illegal and arbitrary. They submitted that if the respondents are allowed to collect/recover 1% labour cess from the bills of the petitioners, then it would amount to permitting the respondents to alter the conditions in the agreements/contracts unilaterally, after commencement of the work under the agreements/contracts. They submitted that if the respondents in implementation of the Cess Act intend to collect/recovery 1% labour cess, they should do so only by taking into consideration the cost of the construction and not the entire value of the work, and in doing so, the element of profit should be excluded for the purpose of deducting 1% labour cess. They thus submitted that the impugned Memo issued by the Government quashed and set aside and the writ petitions be allowed. STAND TAKEN BY THE RESPONDENTS IN THEIR COUNTER/ARGUMENTS 4. On behalf of the Government, their Secretary in the Irrigation & CAD Department filed detailed counter-affidavit. The learned Special Government Pleader representing the learned Advocate General representing the respondents reiterating the counter averments submitted that even though the Cess Act came into force from 03.11.1995, since the Welfare Boards, as provided under Section 18 of the Workers Act, the respondents have not collected the cess. Immediately after constitution of the Welfare Boards on 30.04.2007, the Government made amendments to A.P. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 1999, by issuing G.O. Ms. No. 57, Labour, Employment, Training and Factories Department, dated 26.06.2007. Pursuant thereto, and with effect from the said date, the respondents have sought to levy and collect/recover 1% labour cess from the bills of the petitioners and remit the same to the Welfare Boards, to enable it to take up welfare schemes of the workers. He submitted that though under the Cess Act, the respondents are entitled to levy and collect 1% labour cess from 26.11.1996, on which date, the Central Government issued notification, for collection of labour cess at the rate of 1% of the cost of construction incurred by the employer, yet the respondents are seeking to collect/recover the same only from 26.06.2007 because the Welfare Boards were not constituted earlier. He submitted that since the provisions of Section 3(2) of the Cess Act and Rule 4(3) of the Rules made thereunder, empower the respondents to levy and deduct 1% labour cess at source from the bills payable to the contractors, no prior assessment is required to be made before seeking to collect/recover 1% labour cess from the bills of the contractors. He submitted the petitioners have to file returns under Section 4 of the Cess Act, and the assessment will be made under Section 5 thereof, and if after assessment, it is found that excess amounts were deducted from the bills of the petitioners, the same would be returned to them as per Rule 8 of the Rules, and in the event, it is found that less labour cess was deducted from the bills, then as per the provisions of Rule 13 of the Rules, the petitioners would be called upon to pay the same. He submitted that if any contractor is aggrieved by the orders made by the assessing authority, then he is entitled to make an appeal under Section 11 of the Cess Act read with Rule 14 of the Rules made thereunder to the appellate authority. He submitted that the petitioners cannot estop the respondents from giving effect to the provisions of the statute, and they cannot expect any notice to be given for implementation of a statute, much less for issuing the impugned Memo, directing collection/recovery of 1% labour cess in terms thereof, from the bills payable to the petitioners. He submitted that since the petitioners by executing the agreements/contracts, in Clause 69 have agreed that they would comply with all the labour regulations in force, and having regard to the fact that at the time when the petitioners entered into agreements/contracts with the respondents, the Cess Act had already come into force, except for the constitution of the Welfare Boards, the petitioners cannot contend that since there was no mention about collection/recovery of 1% labour cess in terms of the Cess Act in the agreements/contracts, the respondents are not entitled to levy and collect the 1% labour cess from the bills of the petitioners. He submitted that except for the agreements/contracts entered into prior to the constitution of the Welfare Boards in Andhra Pradesh, in all other subsequent agreements, the clause relating to implementation of the major labour legislations, including Cess Act is incorporated in Clause 70(o) of the agreements. He thus submitted that no fault can be found with the action of the Government in issuing the impugned Memo seeking to collect/recover 1% labour cess in terms of the Cess Act from the bills payable to the petitioners, and prayed that the writ petitions be dismissed. STAND TAKEN BY THE IMPLEAD PETITIONER-INTUC 5. The learned counsel appearing on behalf of the implead petitioner-Indian National Trade Union Congress, submitted that the issues raised by the petitioners in this batch of writ petitions are squarely covered by the unreported judgment dated 28.02.2007 of the Delhi High Court in W.P. (C) No.16260-61/2006 & CM No. 13267/2006 – Choudhary Builders & Anr. V. Union of India & Ors., and though the said order was carried in appeal to the Hon’ble Supreme Court in S.L.P., no stay thereof was granted, and therefore, there can be no reason, for this Court to entertain this batch of writ petitions. He submitted that the agreements entered into by and between the petitioners and the respondents cannot supersede the law and at any rate cannot come in between the respondents from implementing the Cess Act. Hence, he prayed that this batch of writ petitions be dismissed. AFTER ARGUMENTS THE QUESTIONS THAT ARISE FOR CONSIDERATION 6. Having the learned counsel for the petitioners, the learned Special Government Pleader representing the learned Advocate General for the respondents and the learned counsel for the implead petitioner, the following questions do crop up for consideration in this batch of writ petitions: 1. Whether before implementing the provisions of a statute (Cess Act) and issuance of orders in the impugned Memo, which seeks to implement the provisions of the statute, by way of collection of 1% labour cess from the bills of the petitioners, the Government is under an obligation to issue notice to the petitioners, and whether non-issuance of prior notice, violated the principles of natural justice? 2. 2. Whether the Government by issuance of orders in a Memo, is entitled to collect 1% labour cess from the bills of the petitioners w.e.f. 26.06.2007, i.e. a date much prior to its issuance and after constitution of the Welfare Boards as provided under the statute? 3. Whether non-mentioning of the levy and collection of 1% labour cess in the agreements/contracts entered into by the petitioners with the respondents, gives the petitioners any legitimate expectation that 1% labour cess in terms of the Cess Act, would not be collected by the respondents from them? 4. Whether absence of the clause relating to levy and collection of 1% labour cess in the agreements/contracts, disentitles the respondents from deducting the said 1% labour cess from the bills of the petitioners, which in fact, is sought to be collected in giving effect to the Cess Act? 5. Whether by allowing the respondents to collect the said 1% labour cess on the basis of the impugned Memo issued by the Government, amounts to permitting the respondents to alter the terms and conditions of the agreements/contracts, entered into by the petitioners with the respondents? 6. Whether the respondents are entitled to collect 1% labour cess only after following the procedure contemplated under the Cess Act, in that after filing of returns by the petitioners, making of assessment by the authority, determination of liability of the petitioners, and after issuance of show cause notice as to collection of such determined liability? 7. Whether the respondents, while collecting 1% labour cess from the bills of the petitioners in terms of the Cess Act, should collect the same only taking into consideration the cost of the construction, but not the entire value of the work, and whether the element of profit should be excluded while deducting the 1% labour cess? 7. Before proceeding to deal with the above questions, what prompted the Central Government to enact the Workers Act and the Cess Act, may be noted. REASONS FOR ENACTING BUILDING AND OTHER CONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 AND THE BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE CESS ACT, 1996 8. 7. Before proceeding to deal with the above questions, what prompted the Central Government to enact the Workers Act and the Cess Act, may be noted. REASONS FOR ENACTING BUILDING AND OTHER CONSTRUCTION WORKERS’ (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 AND THE BUILDING AND OTHER CONSTRUCTION WORKERS’ WELFARE CESS ACT, 1996 8. The workers engaged in building and other construction works, are the most vulnerable segments of the unorganized labour in India, the works undertaken by them, is casual and temporary and is characterized by their inherent risk to the life and limb of the workers; even the relationship of workers and the employers is temporary; the working hours are uncertain. For the works are made to work for longer hours; the sites at which the workers undertake/carry on their work, lack basic amenities and welfare facilities. Even though there are certain Central and State legislations applicable to building and other construction workers, however, the considering the factors stated above, the Government of India felt the need of a comprehensive central legislation, regulating the safety, health, welfare and other conditions of service of the workers engaged in building and other construction works, and more so when the State Governments and Union Territories had also favoured for a comprehensive legislation. 9. The Committee of the State Labour Ministers, constituted pursuant to the decision of the 41st Labour Ministers’ Conference, held under the Chairmanship of the then Union Labour Minister on the 18th May, 1995, which considered the factors enumerated above, reached a general consensus, and considering the said consensus, the Government of India, proposed and decided to enact a Central Legislation, and further, for the purpose of providing and monitoring social security schemes and welfare measures for the benefit of the building and other construction workers, it was proposed to amplify the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill, 1988, which was introduced in the Rajya Sabha on 05.12.1988, by incorporating provisions for the establishment of Welfare Boards in every State and for levy of cess on the cost of construction incurred by the employers on the building and other construction works for ensuring sufficient funds for the Welfare Boards, to undertake the social security schemes and welfare measures. 10. 10. Though the legislations, to take up the social security and welfare measures of the building and other construction workers, proposed were sought to be brought on emergent basis, but the same could not be enacted immediately and had to be postponed from time to time, for the reasons, namely that as the Parliament was not in session, on 3rd November, 1995, the President of India, promulgated the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Ordinance, 1995 along with another Ordinance for the levy of a cess. Thereafter, on 1st December, 1995, Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill, 1995 along with another Ordinance for the levy of a cess, was introduced in Lok Sabha. Since the said Bill could not be taken up for consideration in the Winter Session, 1995 and the Budget Session, 1996 of Lok Sabha, fresh Ordinances, namely the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Ordinance, 1996 along with another Ordinance for the levy of a cess, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Second Ordinance, 1996, along with another Ordinance for the levy of a cess, respectively were promulgated on 5th January, 1996 and 27th March, 1996 with a view to give continued effect to the legislative protection. Because of dissolution of 10th Lok Sabha, the first Ordinances lapsed, and the before lapse of the second Ordinances, one other Ordinance, namely Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Third Ordinance, 1996 along with another Ordinance for the levy of a cess to give continue effect to the legislative protection, was promulgated on 20th June, 1996. Ultimately, the Parliament on 19th August, 1996, enacted the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and Other Construction Workers’ Welfare Cess Act, 1996. Both the Acts are beneficial pieces of legislation. The objects of the Workers Act, and in particular, the implementation of the welfare schemes mentioned thereunder, are sought to be realized by implementation Cess Act, by collecting a cess by the Welfare Boards, which were sought to be constructed to implement and monitor the schemes relating to the workers. 11. To wit, some of the provisions of the Workers Act, and the terms defined thereunder, may be noticed. 11. To wit, some of the provisions of the Workers Act, and the terms defined thereunder, may be noticed. SCHEME OF THE WORKERS ACT AND CESS ACT 12. The Workers Act, which is a Central Act, and which is deemed to have come into force w.e.f. 01.03.1996, is an Act to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures for the other matters connected therewith or incidental thereto. Section 1(4) of the Workers Act states that the Act applies to every establishment which employs, or had employed any day of the proceeding twelve months, ten or more building workers in any building or other construction work. Section 1(4) of the Workers Act states that the Act applies to every establishment which employs, or had employed any day of the proceeding twelve months, ten or more building workers in any building or other construction work. Section 2(b) defines “beneficiary” to mean a building worker registered under Section 12; Section 2(b) defines “Board” to mean a Building and Other Construction Workers’ Welfare Board constituted under sub-section (1) of Section 18; the expression “building or other construction work”, is defined in Section 2(d) to mean the construction, alteration, repairs, maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water) oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948) or the Mines Act, 1952 (35 of 1952) apply; Section 2(e) defines “building worker” to mean a person who is employed to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed or implied, in connection with any building or other construction work but does not include any such person – (i) who is mainly in a managerial or administrative capacity; or (ii) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; Section 2 (g) defines “contractor” to mean a person who undertakes to produce a given result for any establishment, other than a mere supply of goods or articles of manufacture, by the employment of building workers or who supplies building workers for any work of the establishment; and includes a sub-contractor; the term “employer” in relation to an establishment, is defined in Section 2(i) to mean, the owner thereof, and includes – (i) in relation to a building or other construction work carried out by or under the authority of any department of the Government, directly without any contractor, the authority specified in this behalf, or where no authority is specified, the head of the department; (ii) in relation to a building or other construction work carried on by or on behalf of a local authority or other establishment, directly without any contractor, the chief executive officer of that authority or establishment; in relation to a building or other construction work carried on by or through a contractor, or by the employment of building workers supplied by a contractor, the contractor; Section 2(j) defines “establishment” to mean any establishment belonging to, or under the control of, Government, any body corporate or firm, an individual or association or other body of individuals, which or who employs building workers in any building or other construction work; and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or construction work in relation to his own residence the total cost of such construction not being more than rupees ten lakhs; and Section 2(k) defines “fund” to mean the Building and Other Construction Workers Welfare Fund of a Board constituted under sub-section (1) of Section 24. 23. Under Sections 3 and 4, the Central Government and the State Governments respectively are empowered to constitute the Building and Other Construction Workers’ Advisory Committees at the Central and State levels, while Section 5 empowers the appropriate Government, to constitute one or more expert committees consisting of persons specifically qualified in building or other construction work for advising the Government for making rules under the Act. Section 7 requires that every employer in relation to an establishment to which the Workers Act applies to get such establishment registered, while Section 10 makes such registration mandatory, for in the event of non-registration, the employer of an establishment to which the Workers Act applies, prohibits employing building workers. Registration of building workers as beneficiaries, issuance of identity cards to beneficiaries, cessation as a beneficiary, maintaining of registers of beneficiaries, contribution of building workers, and if the beneficiary is unable to pay his contribution due to any financial hardship, the Board can waive the payment of such contribution for a period not exceeding three months at a time, are dealt with in Chapter IV. Chapter V which contains Sections 18 to 27 deals with Building and Other Construction Workers Welfare Boards. Section 18 provides for constitution of Welfare Boards by the State Governments with effect from such date, as it may, by notification, appoint, constitute a Board, to exercise the powers conferred on, and perform the functions assigned to it under the Act. While other provisions, deals with appointment of Secretary and other officers of Boards, meetings of the Board, non-validation of proceedings of the Boards for the reasons mentioned therein, functions of the Board, grants and loans by the Central Government, Building and Other Construction Workers’ Welfare Fund and its application, budget, filing of annual report and accounts and audit. Chapter VI seeks to regulate the hours of work, welfare measures, and other conditions of service of building workers. 14. From the scheme of the Workers Act, as narrated above, it is clear that it seeks to provide safety, health and welfare to the building and construction worker, by establishing Building and Other Construction Workers Welfare Boards, which are required to generate revenues by implementing the Cess Act. 14. From the scheme of the Workers Act, as narrated above, it is clear that it seeks to provide safety, health and welfare to the building and construction worker, by establishing Building and Other Construction Workers Welfare Boards, which are required to generate revenues by implementing the Cess Act. In this context, it would be appropriate to refer to some of the definitions and provisions of the Cess Act, which was also enacted simultaneously with the Workers Act, as also some of the provisions of the Rules made thereunder. Section 2(a) defines “Board” to mean a Building and Other Construction Workers’ Welfare Board constituted by a State Government under subsection (1) of Section 18 of the Workers Act, and while Section 2(d) states that the words and expressions used herein but not defined and defined in the Workers Act, shall have the meanings respectively assigned to them in that Act. Section 3, which deals with levy and collection of cess. Section 4 requires every employer to file a return in the manner prescribed; Section 5 defines the power of assessment process, while Section 8 deals with interest payable in the event of delayed payment of cess, Section 9 stipulates penalty for non-payment of cess. While Section 11 provides for an appeal to the employer aggrieved by the assessment order made under Section 5. RULES FRAMED UNDER THE CESS ACT 15. By virtue of the power conferred on them by Section 14 of the Workers Act, the Central Government made Building and Other Construction Workers’ Welfare Cess Rules, 1998 (hereinafter referred to as ‘the Cess Rules. Rule 3 defines the cost of construction for the purpose of levy of cess. While Rule 4 makes it mandatory for deduction of cess payable at the notified rates from the bill paid for the “building and other construction work of a Government or a Public Sector Undertaking”. Rule 5 prescribes the manner in which the proceedings of cess collected under Rule 4 shall be transferred by such Government Office, Public Sector Undertakings, local authority, or cess collector, to the Board. While Rules 7 to 14 explain the power of Assessing Officer, Board of Assessment and the bills costs, and the order of assessment. 16. The above being the scheme of the Workers Act, Cess Act and the Rules made thereunder, we may now proceed to deal with the questions. In re question No.1: 17. While Rules 7 to 14 explain the power of Assessing Officer, Board of Assessment and the bills costs, and the order of assessment. 16. The above being the scheme of the Workers Act, Cess Act and the Rules made thereunder, we may now proceed to deal with the questions. In re question No.1: 17. The policies of the government, which are reflected and encrypted in the Acts, are enacted by the Parliament and the respective State Legislatures, for the well-being and welfare of the people, and in particular for the benefit of whom such Acts, are enacted. Since the said Acts, which reflect the will of the people, are enacted by the Parliament and the respective State Legislatures, after lengthy deliberations governing the subject, no notice whatsoever is required to be issued to any person, much less to the affected parties, for their implementation. No person, much less the petitioners can expect issuance of any notice for implementation of the provisions of a statute, for the Government by seeking to implement the statute, is seeking to implement the will of the people. When the statute does not specifically provide for issuance of notice, the petitioners cannot claim that before implementing the provisions of the Cess Act, they should be put on notice and give opportunity of hearing. Be that as it may, it is for the Parliament and the respective State Legislatures, which have enacted the respective statutes, to fix the dates of their operation or implementation. The statutes would come into operation from the dates so fixed therein or from the date the Government notifies in the official gazette about their operation. 18. The Workers Act, which is a Central Act, is a piece of welfare legislation, legislated to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measures and for other matters connected therewith or incidental thereto. To realize the objects of the Workers Act, Government of India, simultaneously along with the Workers Act, enacted the Cess Act, which seeks to collect 1% labour cess and remit the same to the Welfare Boards established under Section 18 of the Workers Act. To realize the objects of the Workers Act, Government of India, simultaneously along with the Workers Act, enacted the Cess Act, which seeks to collect 1% labour cess and remit the same to the Welfare Boards established under Section 18 of the Workers Act. The basic idea of enacting the Cess Act along with the Workers Act, is to augment the resources of the Welfare Boards constituted under the Workers Act, which are entrusted with the job of providing the nature of assistances to the workers engaged in building and other construction works, as provided under Section 22 of the Workers Act. Though the Workers Act and the Cess Act came into force w.e.f. 01.03.1996 and 03.11.1996 respectively, the fact remains, the provisions of the Cess Act, which sought to levy and collect 1% labour cess, was not implemented in the State of Andhra Pradesh because Welfare Boards as provided under Section 18 of the Workers Act, were not constituted. Now that the State Government had constituted the Welfare Boards as provided under Section 18 of the Workers Act, on 30.04.2007, and having amended the Rules, vide G.O. Ms. No. 57, dated 26.06.2007, issued orders in the impugned Memo, directed the officers concerned to collect 1% labour cess from the bills of the petitioners. Since the impugned Memo has been issued by the Government in implementation of the provisions of a statute, no notice whatsoever is required to be issued to any person, much less the petitioners, and more particularly when they are aware of the existence of and coming into force of the Workers and Cess Act, which as stated above, came into force w.e.f. 01.03.1996 and 03.11.1996 respectively. In that view of the matter, the petitioners cannot complain that the Government before implementing the Cess Act and the Memo issued in implementation thereof, was under an obligation to give prior notice, and in the non-issuance of such prior notices, they have violated the principles of natural justice. In re question No.2: 19. As observed in reply to question No.1, Cess Act came into force from 03.11.1995. In re question No.2: 19. As observed in reply to question No.1, Cess Act came into force from 03.11.1995. Though sub-section (1) of Section 3 of the Cess Act, which deals with levy and collection of labour cess, provides that there shall be levy and collection of labour cess at a rate not exceeding two per cent and not less than one per cent of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify, the fact remains, the Central Government, through its Ministry of Labour, in exercise of the powers conferred by subsection (1) of Section 3 of the Building and Construction Workers’ Welfare Cess Act, 1996 and in supersession of the notification of the Government of India in the Ministry of Labour No. S.O. 1767 dated the 17th May, 1996, issued notification on 26.09.1996 specifying a cess for the purpose of the Workers Act, at the rate of 1 per cent, of the cost of construction incurred by an employer. Even though, the State Government, is empowered to levy and collect labour cess at the rate of 1% per cent, as notified by the Centre in the notification from 26.09.1996, the fact remains, the State Government, did not constitute the Welfare Boards as provided under Section 18 of the Workers Act, and they constituted the same only on 30.04.2007. Thereafter, the Government, made amendment to the Rules by issuing G.O. Ms. No. 57, dated 26.06.2007, and sought to collect 1% labour cess from the said date, and accordingly, issued orders in the impugned Memo, directing the officers concerned to collect 1% labour cess from the bills payable to the contractors, from 26.06.2007, and such, direction, in my considered view, cannot be said to be illegal or arbitrary, and more particularly, when the respondents have sought to collect the same only from 26.06.2007, i.e. the date on which they amended the Rules and not from 26.09.1996, the date on which the Central Government issued notification for collection of 1% labour cess from the bills payable to the contractors on the cost of construction incurred by an employer. In re question Nos. 3, 4 and 5: 20. In re question Nos. 3, 4 and 5: 20. The respondents do not dispute the fact that in some of the agreements/contracts entered into by them with the petitioners prior to 26.06.2007, there is no clause incorporated for levy and collection of 1% labour cess from the bills payable to them, and that levy and collection of 1% labour cess, was not included in the estimates submitted. However, the absence of such a clause relating to levy and collection of 1% labour cess in the agreements/contracts and non-inclusion of the same in the estimates, by itself do not preclude the respondents from levying and collecting the 1% labour cess, which in fact, is sought to be levied and collected by giving effect to the provisions of a statute, which was in force as on the date of the respondents entering into agreements/contracts with the petitioners. No doubt, in the agreements/contracts entered into by the respondents with the petitioners prior to 26.06.2007, the clause relating to levy and collection of cess is absent, but the fact remains, at the time when the petitioners entered into agreements/contracts with the respondents, the Workers Act and the Cess Act, which came into force on w.e.f. 01.03.1996 and 03.11.1996 respectively, were very much in force, and in fact, the petitioners in Clauses No. 69 of the agreements/contracts entered into by them with the respondents, have agreed to comply with all the labour regulations. Clause No. 69 of the Agreement, which provides for compliance with labour regulations, reads: During continuance of the contract, the contractor and his sub-contractors shall abide at all times by all existing labour enactments and rules made thereunder, regulations, notifications and bye-laws of the State or Central Government or local authority and any other labour law (including rules), regulations, bye laws that may be passed or notifications that may be issued under any labour law in future either by the State or the Central Government or the local authority and also applicable labour regulations, health and sanitary arrangements for workmen, insurance and other benefits. Salient features of some of the major labour laws that are applicable to construction industry are given below. The contractor shall keep the Department indemnified in case any action is taken against Department by the competent authority on account of contravention of any of the provisions of any Act or rules made thereunder, regulations or notifications including amendments. Salient features of some of the major labour laws that are applicable to construction industry are given below. The contractor shall keep the Department indemnified in case any action is taken against Department by the competent authority on account of contravention of any of the provisions of any Act or rules made thereunder, regulations or notifications including amendments. If the Department is caused to pay or reimburse, such amounts as may be necessary to cause or observe, or for non-observance of the provision stipulated in the notifications/bye laws/Acts/Rules/regulations including amendments, if any, on the part of the contractor, the Engineer-in-Charge/Department shall have the right to deduct any money due to the contractor including his amount of performance security. The Department/Engineer-in-Charge shall also have right to recover from the contractor any sum required or estimated to be required for making good the loss or damage suffered by the Department. The employees of the Contractor and the sub-contractor in no case shall be treated as the Department of the Department at any point of time. 21. Thus, from Clause 69 it is clear that the petitioners have agreed to comply with all the labour regulations in force. Since the Workers Act and the Cess Act, are also major Acts, and were already in force at the time when the respondents entered into agreements/contracts with the petitioners, the petitioners cannot contend that they are not required to comply with the provisions of the said Acts. Mere absence of a clause relating to collection of 1% labour cess under the Cess Act, would not in any way come in the way of the respondents levying and collecting the 1% labour cess from the bills of the petitioners, which in fact, is sought to be levied and collected by giving effect to the provisions of a statute. The law is well settled that there can be no estoppel against a statute (See State of Punjab v. M/s. Nestle India Limited AIR 2004 SC 4559). Even if it was agreed by the respondents that 1% labour cess would not be levied and collected from the petitioners, yet such a promise, would not bind the respondents and would not come in the way of the respondents levying and collecting 1% labour cess in terms of the provisions of a statute. Even if it was agreed by the respondents that 1% labour cess would not be levied and collected from the petitioners, yet such a promise, would not bind the respondents and would not come in the way of the respondents levying and collecting 1% labour cess in terms of the provisions of a statute. At any rate, there was no promise made by the respondents to the petitioners that they would not implement the provisions of the Workers Act and Cess Act, and in fact, in the latest agreements/contracts, executed after 26.06.2007, Clause No.70 was incorporated in the agreements/contracts, dealing with salient features of some major labour laws applicable to establishment engaged in buildings and other construction works, and in sub-clause (o) thereof, the petitioners have agreed as follows: The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Cess Act of 1996: All the establishments who carry on any building or other construction work and employs 10 or more workers are covered under this Act. All such establishments are required to pay cess at the rate not exceeding 2% of the cost of construction as may be modified by the Government. The Department of the establishment is required to provide safety measures at the Building or construction work and other welfare measures, such as canteens, first-aid facilities, ambulance, housing accommodation for workers near the work place etc. The Department to whom the Act applies has to obtain a registration certificate from the Registering Officer appointed by the Government. 22. From the above, it is clear that some of the petitioners in the agreements/contracts entered into with the respondents after 26.06.2007, have agreed to pay labour cess at the rate not exceeding 2% of the cost of construction, as may be modified by the government. 22. From the above, it is clear that some of the petitioners in the agreements/contracts entered into with the respondents after 26.06.2007, have agreed to pay labour cess at the rate not exceeding 2% of the cost of construction, as may be modified by the government. There is no doubt, that the above clause relating to payment of labour cess, was not present in the agreements/contracts entered into by the petitioners with the respondents prior to 26.06.2007, but the fact remains, the petitioners in Clause No. 69 of the respective agreements/contracts entered into prior to 26.06.2007, have agreed to comply with all the existing labour regulations in force, and having agreed so, they cannot contend that the respondents are not entitled to levy and collect 1% labour cess in terms of the Workers Act and Cess Act, which in fact, were in existence and were in force, but were not implemented by the executive as Welfare Boards were not constituted. Since the respondents have sought to levy and collect the labour cess in terms of a statute, by issuing the impugned Memo, it cannot be said that the respondents are permitted unilaterally to alter the terms and conditions of the agreements/contracts. 23. It is the contention of the petitioners that since there was no clause in the agreements/contracts entered into by them with the respondents prior to 26.06.2007 for levy and collection of 1% labour cess in terms of the Workers Act and Cess Act, they had legitimate expectation that the respondents would not levy and collect the same by implementing the Workers Act and Cess Act. This contention of the petitioners cannot be countenanced. The doctrine of “legitimate expectation” is based on the principle that good administration demands observance of reasonableness and where it has adopted a particular practice for a long time even in absence of a provision of law, it should adhere to such practice without depriving its citizens of the benefit enjoyed or privilege exercised. The doctrine of “legitimate expectation” is a latest recruit to a long list of concepts fashioned by Courts for review of administrative actions. The doctrine of “legitimate expectation” is a latest recruit to a long list of concepts fashioned by Courts for review of administrative actions. No doubt, the doctrine has an important place in the development of administrative law and particularly law relating to ‘judicial review, but under the said doctrine, a person may have reasonable or legitimate expectation of being treated in a certain way by an administrative authority even though he has no right in law to receive the benefit. In such a situation, if a decision is taken by an administrative authority adversely affecting his interests, he may have justifiable grievance in the light of the fact of continuous receipt of the benefit, legitimate expectation to receive the benefit or privilege which he has enjoyed all throughout. Such expectation may arise either from the express promise or from consistent practice which the applicant may reasonably expect to continue AIR 2006 SC 2945 (Confederation of Ex-servicemen Association v. Union of India). 24. The term “legitimate expectation” originated from the leading decision of Lord Denning, M.R. in Schmidt v. Secretary of State [(1969) 1 All ER 904 = (1969) 2 WLR 337 = (1969) 2 Ch D 149]. In Attorney General of Hong Kong v. Ng. Yuen Shiu [(1983) 2 All ER 346 = (1983) 2 AC 629], Lord Fraser referring to the decision in Schmidt, observed: The expectations may be based on some statement or undertaking by, or on behalf of, the public authority which has the duty of making the decision, if the authority has, through its officers, acted in a way that would make it unfair or inconsistent with good administration for him to be denied such an inquiry. 25. In Union of India v. International Trading Co. 2003 (4) Supreme 114 the apex Court held that the doctrines of “promissory estoppel” and “legitimate expectation” cannot come in the way of public interest. Indisputably, public interest has to prevail over private interest. The case at hand shows that a conscious policy decision has been taken and there is no statutory compulsion to act contrary. 26. 2003 (4) Supreme 114 the apex Court held that the doctrines of “promissory estoppel” and “legitimate expectation” cannot come in the way of public interest. Indisputably, public interest has to prevail over private interest. The case at hand shows that a conscious policy decision has been taken and there is no statutory compulsion to act contrary. 26. The petitioners are merely harping on the contention that since there is no clause in the agreements/contracts entered into by them with the respondents prior to 26.06.2007 with respect to collection of 1% labour cess, they legitimately expected that the respondents would not levy and collect 1% labour cess in terms of the Workers Act and Cess Act. It is not their case that the respondents had promised them that they would not implement the provisions of the Workers Act and Cess Act. In fact, the petitioners have themselves, as stated above, in Clause 69 of the agreements/contracts entered into by them with the respondents, have agreed to implement all the existing labour regulations, and since the Workers Act and Cess Act, which are major labour regulations, were very much in force, mere non-mentioning of the same in the agreements/contracts, will in no way give them any right, much less any legal right to contend that they had legitimately expected that the respondents would not implement them and levy and collect the labour cess, prescribed thereunder. Even if such levy and collection of 1% labour cess was not mentioned in the agreements/clauses, yet the same would not come in the way of the respondents in levying and collecting them in pursuance of implementation of a statute. In fact, as stated by the apex Court in the decisions referred to above, legitimate expectation cannot be claimed as a matter of right when larger public interest is sought to be achieved, in the instant case, the larger public interest which is sought to be achieved by the respondents by levy and collection of 1% labour cess, is to improve the welfare conditions of workers engaged in building and other construction workers. Therefore, the petitioners are not entitled to invoke the doctrine of legitimate expectation. In re question No. 6: 27. Therefore, the petitioners are not entitled to invoke the doctrine of legitimate expectation. In re question No. 6: 27. To consider this question, it is appropriate to refer to the provisions of Section 3 of the Cess Act, which deals with levy and collection of cess: Levy and collection of cess: - (1) There shall be levied and collected a cess for the purpose of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, at such rate not exceeding two per cent, but not less than one per cent of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify. (2) The cess levied under sub-section (1) shall be collected from every employer in such manner and at such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where an approval of such building or other construction work by such local authority is required, as may be prescribed. (3) The proceeds of the cess collected under sub-section (2) shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one per cent of the amount collected. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved. 28. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the basis of the quantum of the building or other construction work involved. 28. A reading of the above provision, would make it clear that under sub-section (1) of Section 3 of the Cess Act, cess not exceeding 2 per cent and not less than 1 per cent is leviable on the cost of construction incurred by an employer, and under sub-section (2) thereof, such labour cess can be deducted at source or by way of advance collection, while the proceeds of the labour cess so collected, shall under sub-section (3) be paid or remitted to the Welfare Board, and while sub-section (4) states that notwithstanding anything contained in sub-sections (1) and (2) the labour cess leviable under the Act, including payment of such labour cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates, as may be prescribed on the basis of the quantum of the building or other construction work involved. A collective reading of the above sub-clauses, would indicate that the respondents are entitled to collect the 1% labour cess at source, which shall be subject to final assessment. The fact, that the labour cess deducted at source is subject to final assessment, is evident from the fact that Section 4 of the Cess Act, requires the employer to file returns, and under Section 5 thereof, the authority shall make assessment and pass an order determining the liability, and any person, aggrieved by the assessment, can prefer an appeal under Section 11 of the Cess Act read with Rule 14 made thereunder. If in the assessment, it is found that the labour cess deducted at source, is in excess of what was to be collected, then the excess so collected, shall be returned to the assessee as per Rule 13 of the Rules, and if it is found that the labour cess collected at source, is less than what was required to be collected, then the same as per Rule 13 of the Rules, would be collected from the asseseee. This procedure contemplated under the Cess Act and the Rules, clearly shows that deduction of labour cess or by way of advance at a uniform rate is permissible without a prior assessment, and such collection of labour cess at source, without prior assessment, cannot be said to be illegal and more so when the labour cess so collected, is subject to adjustability upon final assessment and fixation of liability. In that view of the matter, it has to be held that the contention of the petitioners that the respondents are not entitled to collect 1% labour cess unless they follow the procedure contemplated under the Cess Act, namely after filing of returns by the petitioners, followed by assessment by the authority, determination of liability of the petitioners, and calling upon them to show cause as to why the amount determined should not be collected, is bereft of any merit. In re question No. 7: 29. Both Section 3 of the Cess Act and Rule 3 of the Rules made thereunder, as also the notification dated 26.09.1996, issued by the Central Government, provide for collection of 1% labour cess on the cost of construction incurred by an employer. Rule 3 of the Rules defines “the cost of construction” for the purpose of levy of cess as under: Levy of cess– For the purpose of levy of cess under sub-section (1) of Section 3 of the Act, cost of construction shall include all expenditure incurred by an employer in connection with the building or other construction work, but shall not include – cost of land; any compensation paid or payable to a worker or his kin under the Workmen’s Compensation Act, 1923. 30. From the above, definition of “cost of construction”, it is clear that it includes all expenditure incurred by an employer in connection with the building or other construction work, and it excludes the cost of land, and any compensation paid or payable to a worker or his kin under the Workmen’s Compensation Act, 1923. Thus, it is clear that the labour cess sought to be collected is not on the entire value of the work, but only on the cost of construction, which is as provided in Section 3 of the Cess Act and Rule 3 of the Rules made thereunder, as also the notification dated 26.09.1996, issued by the Central Government. Thus, it is clear that the labour cess sought to be collected is not on the entire value of the work, but only on the cost of construction, which is as provided in Section 3 of the Cess Act and Rule 3 of the Rules made thereunder, as also the notification dated 26.09.1996, issued by the Central Government. Therefore, it has to be held that the respondents while levying and collecting the labour cess, have to collect the same on the cost of the construction incurred by an employer and not the entire value of the work. Accordingly, this question is answered. RESULT OF THE WRIT PETITIONS 31. Accordingly, with the observations, as made hereinabove, the writ petitions are disposed of. No costs.