ASSOCIATED CEMENT COMPANIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By way of this petition, the petitioner is seeking quashment of the recovery notices dated 23-12-2004 (Annexure P-1) and dated 18-1-2005 [Annexure P-1(A)] issued by respondent No. 3 said to be issued under Section 45-B of the Employees' State Insurance Act, 1948 (for short "the ESI Act"). Indisputably, the petitioner-Company, vide notifications (Annexure P-2 to Annexure P-14), was exempted from the operation of the ESI Act for a period commencing from 16-9-1989 upto 15-9-2004 by way of various notifications issued by the appropriate Government under Section 87 of the ESI Act.

(2.) Respondent No. 3 issued various demand notices demanding ESI contribution amounting to Rs. 91,51,509/- for the period commencing from 16-9-2000 to 31-5-2004. The demand notices were replied by the petitioner-Company denying the aforementioned liability pursuant to the notifications issued by the appropriate Government exempting the petitioner from operation of the ESI Act. However, respondent No. 3 rejected the contention raised by the petitioner and issued impugned notices [Annexures P-1 and P-1(A)] for recovery of the above amount. Hence, this petition.

(3.) The main contention raised by Shri Pradeep Saxena, learned Counsel appearing for respondent No. 3, is that though vide notifications, regular employees were exempted but the employees, who were not permanent and/or working under the contractor, were not exempted, and therefore, to that extent, the petitioner-Company is liable to deposit the above amount towards ESI contribution.