SUPREME TILE WORKS Vs. ASST PROVIDENT FUND COMMISSIONER

JUDGEMENT

(1.) The petitioner, M/s. Supreme Tile Works, has challenged the legality of the order dated 29.1.2016, passed by the Assistant P.P. Commissioner, under Section 14-B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ('the Act', for short), whereby the learned Commissioner has levied damages to the tune of Rs. 6,67,805. The petitioner has also challenged another order, equally dated 29.1.2016, passed under Section 7-Q of the Act, whereby the learned Commissioner has imposed the interest to the tune of Rs. 3,27,666.

(2.) Briefly the facts of the case are that the petitioner is a partnership firm which carries on the business of manufacturing and marketing Mangalpre tiles. The petitioner has a factory at Kundapura Taluk, Udupi District. The petitioner is covered under the provisions of the Act, According to him, he is even paying the contributions of both employers and employees to the respondent. However, due to lack of sales, due to drought affecting the District; due to construction of the buildings with concrete roofs, the demand for Mangalore tiles has fallen drastically in the market. Because of these reasons, the petitioner could not deposit the PF amount from April 2013 to December 2014. Therefore, notices were issued to the petitioner. Subsequently, after hearing the petitioner, both the impugned orders were passed by the respondent. Hence, this petition before this Court.

(3.) Mr. Nataraja Ballal A, the learned counsel for the petitioner, submits that the petitioner does not have mens rea to evade the payment of PF amount. But due to severe economic conditions being faced by the petitioner, the petitioner could not pay the PF amount. He further submits that according to the petitioner they have already deposited the interest amount levied by the learned Commissioner, by his order dated 29.1.2016, i.e., an amount of Rs. 3,27,666. Therefore, the orders deserve to be set aside by this Court.