Real judgements, distilled

Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

Frequently asked questions

Is this suitable for use in legal research and court filings?+

Legal Case Shots is built to help you quickly identify and understand relevant precedent. For citation in pleadings or filings, always verify against the full judgment PDF and current citation format (e.g., 2026 INSC ___).

How is a "lesson learnt" different from the judgment's holding?+

The holding is what the court legally decided. The lesson learnt translates that into a practical takeaway: what a lawyer should factor into case strategy or client advice as a result of this precedent.

Is the full judgment available, or just a summary?+

Both. Each case shows a distilled summary (case type, key holding, and lesson learnt) and links to the full judgment as a PDF for when you need the complete text for research or citation.

Can I filter judgments by date or case type?+

Yes. Use Advanced Filters to narrow results by decision date and by practice area, including Constitutional Law, Criminal Law, Service & Administrative Law, Family Law, Civil Property & Inheritance, and Labour & Industrial Law.

Can I search judgments by a specific judge?+

Yes. You can filter judgments by the judge or bench that decided the case, which is useful for tracking how a particular judge has reasoned on similar issues across multiple rulings.

What is Legal Case Shots?+

Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Labour & Industrial LawSupreme Court of India

Uttar Pradesh Power Transmission Corporation Ltd. & Anr. v. CG Power and Industrial Solutions Limited & Anr.

Special Leave Petition (Civil) · 2021 INSC 294Decided 12 May 2021
Special Leave Petition (Civil) No. 8630 of 2020
Justice Indira Banerjee · Justice Uday Umesh Lalit

Background

UPPTCL engaged CG Power (formerly Crompton Greaves) to build a 765/400 kV power substation in Unnao, splitting the work into four separate contracts: supply of equipment, erection/commissioning, civil works, and operation & maintenance. Years later, a government audit (CAG) flagged that UPPTCL had failed to deduct "labour cess" (a welfare levy on construction costs under the Building and Other Construction Workers' Welfare Cess Act) from the supply contract specifically, even though it had already been paid on the civil-works contract. UPPTCL then tried to recover about Rs. 2.6 crore by withholding payments and threatening to encash CG Power's bank guarantee, without ever actually assessing the cess through the legally prescribed process; the Allahabad High Court struck down UPPTCL's demand letters, and UPPTCL appealed to the Supreme Court.

Decision Breakdown

The Supreme Court held that the labour cess under the Cess Act and BOCW Act applies only to genuine "building or other construction work," and that a pure supply contract for equipment and materials, which does not involve construction or deploy construction workers, falls outside the Act's definition of "contractor" and is not subject to the cess. The Court also held that even if cess had been properly due, UPPTCL could not simply recover it by unilaterally withholding bills or invoking a bank guarantee; the law requires a formal assessment and levy process, and recovery must follow the specific procedure laid down in the Cess Act and Rules. The Court further held that a CAG audit observation alone cannot be treated as conclusive proof of liability, since CAG reports are themselves subject to parliamentary scrutiny and are not binding findings. The appeal was dismissed and the High Court's order quashing UPPTCL's demand was upheld.

Lesson Learnt

A government statutory cess can only be levied and recovered through the exact procedure the law prescribes, an auditor's objection is not a substitute for a proper assessment, and even in a composite project, each distinct type of contract (such as supply versus construction) must be examined on its own terms to see whether a given levy actually applies to it.

Uttar Pradesh Power Transmission Corporation Ltd. & Anr. v. CG Power and Industrial Solutions Limited & Anr. – Legal Case Shots | LegalAware