THE ASSISTANT DIRECTOR Vs. M/S VASU AGARBATTHIS

JUDGEMENT

(1.) This appeal is filed by the Corporation against the order dated 7.9.2012 passed in ESI Application No.6/2008 on the file of the Presiding Officer, Industrial Tribunal, Mysore allowing the application filed by the respondent and setting aside the order dated 28.2.2008 holding that amount paid towards outside job work, security charges and commission, no contribution is payable.

(2.) The appellant issued a notice in Form -C - 18 claiming contribution of Rs. 3,28,816/- towards outside job work, security charges and commission to field force vide notice dated 18.6.2007. The respondent submitted the statement on 17.9.2007 and contended that he is not liable to pay the said amount. The respondent stated that he is not liable to pay contribution on the job work done by the outside contractor, because the contractor is engaging his workers or he does the work himself with his family members and carried out the work in his place. The contractor would raise bill against the expenses and other allied charges, which the respondent pays. The respondent has no supervision and control against the work done by the said contractor. The payment to the contractor includes the cost of raw material purchased, rent, electricity bill, transportation, telephone expenses and other expenses including the profit of the contractor.

(3.) Further the respondent engaged services of security, who are having their independent ESI Code and remitting ESI contribution of their employees including the security personnel working in the security establishment. The appellant claimed contribution on commission paid to field force. The respondent has engaged commission agents and paying commission only based on the performance of the said field force who is working on commission basis, so they are agents of the products of the respondent's factory. They are not drawing salary and they were not on the rolls of the respondent's factory. Thus the respondent contended that he is not liable to pay the contribution as claimed by the appellant.