Salem Spices Private Limited vs The Employees Provident Fund Organisation

Vinod K. Sharma, J.—The Petitioner prays for issuance of a writ in the nature of Certiorari for quashing the order, dated 26.06.2005 passed by the Employees Provident Fund Organisation covering the establishment of the Petitioner under the Employees Provident Fund and Miscellaneous Provisions Act, 1952.

The only ground of challenge is that the impugned order proceeds on a wrong presumption that it was on the request of the Petitioner that the impugned order has been passed, whereas, in fact the Petitioner had objected to the coverage of the Petitioner''s establishment under the Employees Provident Fund Act.

In support of this contention, the Petitioner has referred to Paragraph 5 of the affidavit which reads as under:

On 28.03.2005, the Enforcement Officer gave a hand written show cause notice and on 21.04.2005, a prosecution show cause notice was issued to the Petitioner. In response to this show cause notice, a letter was written by the Petitioner on 28.04.2005 to the Enforcement Officer requesting him to disclose as to how the Act applied to the Petitioner. In the meanwhile, a Code Number was also allotted.

The letter dated 28.4.2005 to which reference is made reads as under:

SALEM SPICES PRIVATE LIMITED

SALEM SPICES PRIVATE LTD., Rasipuram Road, Mathur P.O. Trichy.Via

Pudukkottai District.

Pin 622 515.

By Registered post

with Ack due

28.04.2005

To

The Enforcement Officer,

Employees Provident Fund Organisation,

Trichy.

Dear Sir,

Sub: The Employees Provident Funds and Miscellaneous

Provisions Act, 1952 - Your show cause notice,

dated 21.04.2005 - Regarding.

Ref: 1. Your letter dated 21.04.2005(Letter received by us on 23.04.2005)

Our letter dated 25.2.2005

Our letter dated 07.03.2005

Endorsement dated 11.04.2005.

With reference to the above, we wish to inform that our company is registered under the Indian Company Act on 16.01.2003 at Coimbatore. The production was started on 15.4.2003 and the Central Excise Registration Certificate was obtained on 26.05.2003.(Xerox copies enclosed for Registration, production and sales)

It is once again reiterated that as referred in our letters cited in reference No. 2 and 3 the Employees Provident Fund and Miscellaneous Provisions Act, 1952 is not applicable on the product. The manufacture does not come under the schedule of employment. Further, as requested in our letter you have not facilitated us to the point of applicability for enabling us to take the coverage.

Further we had already submitted month wise employee''s details, General Ledger for the year 2003-2004 and Annual Report, Personnel cost details for your verification on 11.04.2005. Further you are also enclosed the same in your letter dated 28.03.2005.

We have already submitted Attendance Register for the period from May 2003 to 28th March 2005 and salary Register for the period May 2003 to February 2005.

The same records were seized by you on 28.03.2005. since our Establishment was started only on 16.01.2003 the production of past five years income Tax returns does not arise. We had already submitted xerox copy of Form No. I, dated 01.11.2004.

We are maintaining Accounts in computer system. We are not maintaining cash books separately. We have got vouchers from the date of start upto March 2004.

We kindly request your goodself that your esteemed organisation can kindly guide and facilitate us to how this act is applicable to our product for taking coverage.

Thanking you,

Yours faithfully, for SALEM SPICES PRIVATE LIMITED, sd/- 28.4.2005

R.Murali

Documentation.

Inspite of counter having been filed, the averments reproduced above have not been specifically denied. The impugned order therefore, on the face of it is arbitrary being based on wrong facts which cannot be sustained in law.

Consequently, the Writ Petition is allowed,the impugned order is set aside, with liberty to the Respondent to proceed for the coverage of the Petitioner establishment in accordance with law, if the material on record shows that the establishment of the Petitioner is covered under the Employees Provident Fund Act.

Consequently, connected Miscellaneous Petition is closed. No. costs.