Labor Cess Inapplicable to Material Supply and Consultancy: Jharkhand HC

State of Jharkhand through the Secretary Vs Flowmore Limited (Jharkhand High Court) Introduction: In a pivotal decision by the Jharkhand High Court, the application of Labor Cess on material supply and consultancy charges was examined. This stemmed from the case between the State of Jharkhand and Flowmore Limited. The court delved into the applicability of the Labor Cess, especially in contracts distinct from civil works. Analysis: The Jharkhand High Court’s judgment was rooted in the understanding of contracts and their demarcation. The Court scrutinized the nature of the contract betwe...