Nagaland depts asked to comply with SC directive on cess collection

A consultative meeting with engineering departments was held by the Nagaland Building & Other Construction Workers' Welfare Board (NBOCWWB) & Finance Department at Conference Hall, New Secretariat, Kohima on May 13. (DIPR Photo)

A consultative meeting with engineering departments was held by the Nagaland Building & Other Construction Workers' Welfare Board (NBOCWWB) & Finance Department at Conference Hall, New Secretariat, Kohima on May 13. (DIPR Photo)

Kohima, May 13 (MExN): The Nagaland Building & Other Construction Workers’ Welfare Board (NBOCWWB) and Finance Department held a consultative meeting with engineering departments under the Government of Nagaland at Conference Hall, New Secretariat, Kohima, a DIPR report informed on May 13.

Focusing primarily on the Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 (Act No. 27 of 1996), which came into force on March 1, 1996, the NBOCWWB, Chairperson, Dr Kekhrie Yhome said that federal states were slow to implement the Act and adoption of Nagaland Building and Other Construction Workers' (Regulation of Employment and Conditions of Service) Rules, 2010 began only on June 15, 2011.

Yhome said that the Board which is a ‘statutory’ and ‘body corporate’ established by an Act of Parliament, primarily functions to protect, provide and ensure social security for all those who are engaged in building and other construction activities.

He explained that the NBOCWWB is a health and welfare-oriented board with enforcement powers and Welfare Fund is incorporated into the Board, for which the funds are chiefly derived from the 1% workers’ welfare Cess levied on the ‘cost of construction.’ He added that the Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is administered under the Building and Other Construction Workers’ Welfare Cess Act, 1996. ‘Cess is not a tax or revenue, but maybe a ‘fee’ which is constitutionally and legislatively enacted assessment and levy and therefore the collection is strictly compulsory, and Drawing and Disbursing Officers (DDOs) failing to pay Cess within the specified time frame may attract Cess recovery, with penalty or interest, or imprisonment,’ the DIPR report stated.

In this connection, Yhome is said to have reiterated directives from the Supreme Court of India, and pointed out that the Nagaland Department of Finance issued a standing notifications in 2012 to various concerned departments for compulsory cess collection and that every drawal authority and sanction notification by the department of finance explicitly informs cess deduction.

However, many establishments, including Ministries under the Government of India, State Departments, and Government-run Public Sector Undertakings operating in Nagaland State, have not been dutifully remitting or reporting their Cess payments to the Board. Likewise, delay in payment is another concern, which violates procedures and for a salary-economy State like Nagaland, the huge financial burden on public expenditure will immediately trigger an economic collapse, and the public will suffer from economic depression for many decades, the DIPR report stated.

For the moment, the Chairperson said that ‘they are initiating a re-examination of State expenditures for the past three financial years, on a department by department basis’ and as such, he appealed to each and every department to work together to ensure the State's fiscal health. He also said that the Board, on its part, would enforce honesty in financial administration by various cess-payable agencies, and initiate legal action in cases where erring officials are found. Where lapses are detected, the Board shall decide further action, he added.

Meanwhile, CEO of the Board, T Chubayanger said that the Welfare Board is constituted to register the construction workers in the state and provide them social security by providing certain benefits. And in order to provide these benefits, the central government created the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

He said the purpose of this Act is to keep an eye on the working conditions of the workers and acts as a social welfare scheme that works with the motive to provide benefits to the workers who are involved in the activities related to building and construction across the country.  The CEO also said that they are trying to streamline payment of cess and renewal of registration through an online process that is available on the Board’s official website, the DIPR report stated. 

Commissioner & Secretary (Finance), V Kezo commented that all concerned departments should comply with the directives given by the Supreme Court and fully implement it. This Act is an overarching Act and will surpass any other Acts, he said, while adding that the Board would be applying a common yardstick for every department. He also stated that the Board would also try to work out a mechanism that will sensitise everyone about the Act, the report stated.