A. PRABHAKARA REDDY & CO. vs STATE OF M.P. .

The Supreme Court ruled that the demand for cess under the Building and Other Construction Workers’ Welfare Cess Act, 1996, is valid for contracts finalized before the constitution of the Madhya Pradesh Building and Other Construction Workers’ Welfare Board. The Court held that the cess is applicable from the date of the work order, and the argument that it would operate retrospectively was rejected. Consequently, the appeals challenging the cess demand were dismissed, affirming the earlier judgment of the Division Bench.