OMEGA ZIPS Vs. THE JOINT DIRECTOR

JUDGEMENT

(1.) This appeal is directed against the order dated 01.04.2015 made in E.S.I.O.P. No. 4 of 2014 filed by the appellant herein.

(2.) The appellant herein suffered an order under section 45 A of the Employees State Insurance Act, 1948. That the appellant is covered by the said Act is admitted. The only issue is regarding the levy of contribution. The authority took the view that while calculating the contribution, certain heads were omitted. During the proceedings before the E.S.I. Court, as well as this Court, it was conceded by the appellant that the scope of controversy is as to whether the component of conveyance allowance paid by them to the purpose can be included in the term "wages" for the purpose of calculating the contribution. The ESI Court did not agree with the said submission. The ESI Court took the view that payment of conveyance allowance on a uniform basis regardless of the employee concerned incurred any expenditure on his journey to the place of work is not synonyms with the travelling allowance envisaged in Section 2(22)(b) of the ESI Act.

(3.) This appeal was admitted as the following substantial questions of law arose for consideration: