https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=769505 https://www.taxtmi.com/caselaws?id=769505 Prohibiting the employment of contract labour at the Central Warehousing Corporation's Inland Clearance Depot (ICD) - Challenge to notification dated 17 November 2006 issued by the Ministry of Labour and Employment, Government of India, whereby employment of contract labour in the petitioner's establishment was prohibited - non-application of mind, as required by, and in accordance with, Section 10 (2) of Customs Act, 1962. Whether Incidental or Necessary, the Nature of Work Carried Out by Contractual Labourers at CWC's ICD, Patparganj? - HELD THAT:- From interpretation of Section 10 (2) (a), it appears that the argument of work carried out being incidental to, rather than a core function of the enterprise, holds no water. Furthermore, keeping in mind the language of the section - "incidental to, or necessary for the industry,", the finding of the committee that contract labour has been carried on by the same workers despite changes in contractors since 1985 speaks to a certain necessary nature of the work being carried out. Whether the Work is of a Perennial nature - HELD THAT:- The CACLB's findings on the subject are that the work is of perennial nature, and that the same is evidenced by the continued hiring of the same workmen since 1985. Their analysis confirms the argument of the UOI that regardless of trends of mechanisation, a manpower element will always be required given the nature of work - This drastic decline in total staff employed by the CWC from the year 2000 until 2020 does not reflect in the fluctuations of contract labourers deployed, which were largely similar over 18 years out of the 20-year period for which data was produced. Whether work is done ordinarily through regular workmen in that establishment or an establishment similar thereto? - HELD THAT:- The UOI echoes the unequivocal finding of the CACLB in its 53rd MoM that similar work is being carried out by regular employees at a similar establishment of the CCI. Whether the work is sufficient to employ a considerable number of whole time workmen? - HELD THAT:- The deployment of around 300 contractual labourers each year over 18 years out of a 20-year timeframe speaks to a sufficiency of work. This number is no small one, and cannot be brushed aside as being insignificant. Conclusion - i) There has been no error committed by the Government in the passing of the impugned notification and that the CACLB's 53rd MoM shows application of mind to the factors enshrined within Section 10 (2) (a) with specific consideration of data pertaining to the ICD at Patparganj. ii) The impugned notification 17 November 2006 issued by the Ministry of Labour and Employment, Government of India, under Section 10 (1) of the Act in respect to the prohibition of employment of contract labour at the CWC's ICD at Patparganj is upheld. Petition disposed off. Case-Laws Customs Thu, 24 Apr 2025 00:00:00 +0530