ASSISTANT PROVIDENT FUND COMMISSIONER (ENFORCEMENT), A.P. AND ANOTHER Vs. K.M.R. EXPLOSIVES PVT. LTD., SECUNDERABAD

JUDGEMENT

(1.) This writ petition is filed challenging the order dated 16.9.2010 passed by the Employees' Provident Fund Appellate Tribunal, New Delhi in ATA No. 439(1)2005, and also the proceedings dated 24.3.2005 in Ref.No. AP/ 23015/ R.CELL/ Rc. No. 141 / 04/ 1451 issued by 1st respondent; and the consequential proceedings initiated by 2nd respondent in Ref.No. AP/23015/ Recovery Cell/2005 dated 4.3.2005.

(2.) The petitioner is a company incorporated under the Companies Act, 1956 in 2001 and was engaged in manufacturing of material used in mining operations.

(3.) The petitioner contends that the company did not do any activity from the date of its commencement till its closure on 13.5.2002 due to various reasons; that it did not even mobilize funds of Rs.1 lakh from the date of its incorporation; that it became defunct and was closed with effect from 13.5.2002; that five persons were employed on ad hoc basis and were terminated within one year, since there was no activity in the unit; that on 4.3.2005, the 2nd respondent issued a show-cause notice stating that a notice dated 31.7.2003 under Sec. 7-A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (for short, 'the Act) was earlier issued by 1st respondent demanding amounts under the Act; that petitioner submitted explanations stating that no such notice dated 31.7.2003 was given to petitioner; that the said proceeding was issued ex parte without giving any opportunity to petitioner; that the proceedings issued under the Act had been initiated without proper verification of the records by respondents, and without service of notice before issuing proceedings under Sec. 7-A of the Act; and that he came to know about these proceedings only when the show-cause notice dated 4.3.2005 was served on petitioner.