ASSISTANT PROVIDENT FUND COMMISSIONER, EMPLOYEES PROVIDENT FUND ORGANISATION Vs. THE EMPLOYEES' PROVIDENT FUNDS APPELLATE TRIBUNAL AND ORS.

JUDGEMENT

(1.) This Writ Petition is filed by the Employees Provident Fund Organisation challenging the order of Employees' Provident Funds Appellate Tribunal, New Delhi, allowing the appeal preferred by the second respondent, challenging the order levying damages under Section 14B of Employees Provident Fund Act.

(2.) The second respondent is an industrial establishment in Tirunelveli. It is not in dispute that the second respondent has committed default in payment of Provident Fund Contribution. However, it admitted that all the dues were settled, however with a delay. After collecting interest for the belated payment, the petitioner proceeded to assess damages under Section 14B of Employees Provident Fund Act. By order, dated 31.07.2009, the petitioner levied a sum of Rs.1,04,207/- by way of damages under Section 14B of the Employees Provident Fund Act, for certain period. This order was challenged by the second respondent before the first respondent Appellate Tribunal. The Appellate Tribunal has rendered a specific finding in paragraph 7 of the order, which runs as follows:

(3.) It is unfortunate that after recording a specific finding that the delay in remittence was neither wilful nor wanton and that the delay was solely on account of financial problem faced by the Establishment, the first respondent remitted the matter with the direction to assess the liability @ 22% {inclusive of interest}. This order was challenged by the petitioner before this Court.