SMALL GAUGES LTD Vs. V P RAMAIAH

JUDGEMENT

(1.) The order challenged in this petition is dated 24.4.1995 and has been passed by the Regional Provident Fund Commissioner, Pune. It has been held that there is functional integrality between the petitioners and therefore, all the units must be clubbed together in order to ascertain the liability of payment of provident fund. It has been found that all the petitioners are liable to contribute to the Provident Fund Scheme framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 w.e.f. 31.3.1982. An amount of Rs.2,23,536.40 has been claimed from the three petitioners as dues payable for the months of April 1982 to February 1995.

(2.) The petitioners have challenged this order primarily on the five grounds: (i) that the claim for Provident Fund contributions has been made belatedly; (ii) that there was no functional integrality between the three petitioners; (iii) that the documents on which reliance is placed by the Department in the enquiry conducted u/s 7A of the Act have not been furnished to the petitioners; (iv) that dues have been claimed from a date which was prior to the date when they came into existence and; (v) that since the excise department had concluded that the 3 petitioners had separate identities and there was no functional integrality between them, the findings of the excise authority ought to have weighed with the respondent herein while passing the impugned order.

(3.) To ascertain whether the contentions raised on behalf of the petitioners can be accepted it would be necessary to advert to a few facts. Petitioner No.1 (for short, "Small Gauges Ltd.") commenced its business of 8" gauges in 1977. The 3rd Petitioner came into existence in 1977 and was doing the job work and thread grinding work. The manufacturing activities of Petitioner No.2 commenced from 1980 and was also engaged in doing job work and manufacturing special gauges. A code number was allotted by the provident fund authorities to the Small Gauges Ltd. from October 1983 and accordingly, it has been deducting the contributions from the salaries of the employees and depositing the same alongwith a matching contribution of its own from October 1983. A show-cause notice was issued to all the petitioners u/s 7A of the Act calling upon the petitioner No.1 to remit provident fun contributions in respect of the employees working with Petitioner Nos.2 and 3 for the period from January 1979 to June 1991. The enquiry u/s 7A was concluded and Petitioner No.1 was held liable to pay Rs.103,484 as provident fund dues in respect of the Petitioner Nos.2 and 3. This amount was determined on the basis that petitioner Nos.2 and 3 were branches/departments of the petitioner No.1.