A. Prabhakara Reddy & Co vs State Of M.P. & Ors

The Supreme Court addressed the legality of cess demands under The Building and Other Construction Workers’ Welfare Cess Act, 1996, specifically Section 3, in relation to contracts finalized before the establishment of the Madhya Pradesh Building and Other Construction Workers’ Welfare Board. The Court held that cess cannot be levied retrospectively on contracts executed prior to the Board's constitution, affirming that the cost of construction is determined at the time of contract execution. Consequently, the demand for cess on pre-Board contracts was deemed unwarranted and illegal, leading to the dismissal of the appeals.