Harsh Kumar Mehta
Consultant In Labour Laws/hr
+2 Others

Dear All Seniors
I need your help in the matter of ESI Inspection on the below mentioned issues :-
Q -Under Amendment Section 45(4) of ESI , Joint Director / Deputy Director Vigilance has got power of Test Inspection / Re- Inspection.
Q -It is mandatory to pass Order Under 45 A, If Client pay the Determined Amount Liability as per C- 18 received.
Q -From Which date the amount of Interest and Damages are derived / charged by the ESI Authority - From the date of receipt of C- 18 Notice OR from the Order received under 45A.
Q -However as per Amendment Act under Section 45AA of ESI, 60 days are given to make an appeal before Appellate Authority - RO / SRO OR Filing the case before EI Court. Query is interconnected to above to derive the days / date
A line in reply is appreciated.
Regards,
Azim
11th November 2014 From India, Mumbai
Q -Under Amendment Section 45(4) of ESI , Joint Director / Deputy Director Vigilance has got power of Test Inspection / Re- Inspection - yes
Q -It is mandatory to pass Order Under 45 A, If Client pay the Determined Amount Liability as per C- 18 received - yes
Q -From Which date the amount of Interest and Damages are derived / charged by the ESI Authority -
From the date of receipt of C- 18
Q -However as per Amendment Act under Section 45AA of ESI, 60 days are given to make an appeal before Appellate Authority - RO / SRO OR Filing the case before EI Court. Query is interconnected to above to derive the days / date - if you are not appealing then the interest and damages will be there
11th November 2014 From India, Chennai
Sir(s),

1. In my opinion, the para-wise reply of the issues raised by you in above thread are as follows:-

(a) Test Inspection: Section 45(4) do not disclose the authorities who are competent for re-inspection etc. It is only an enabling provision. For list of authorised officers who are having powers of a Social Security Officer are mentioned in Regulation 102 of ESI (General) Regulations, 1952 ( as amended w.e.f. 1/2011). Please refer to said Regulation.

(b) C-18/D-18 is only a form on which notice is issued to the employer/principal employer for deposit of certain dues of contribution,interest or damages which are proposed to be assessed or liable for recovery as per records of ESIC. If employer/principal employer deposits the amounts of contributions/damages after receipt of said C-18 or D-18 as the case may be, it will mean that he accepts the liability and therefore a speaking order is issued or not subsequently is of no importance. Kindly see the wording/language of said forms of notices mentioned as C-18 or D-18.

(d) (i) For levy of interest please refer to Rules 31, 31-A & 31-B of ESI (General) Regulations, 1950. Interest becomes payable exactly from the 1st date of default in payment of contribution. Issue of a C-18 or Speaking Order has no relevance to decide from which date the interest will be recovered or payable. Authorities may issue C-18 at any time at their convenience, but interest is payable for period of delay as mentioned in above Regulations.

(ii) For levy of damages please refer to Regulations 31-C of ESI (General) Regulations, 1950 which lays down that damages are payable as per rates specified if an employer fails to pay contribution within the period of defaults. In other words, the damages are payable right from the 1st day of default as mentioned in Regulation 31 as mentioned above. Issue of D-18 or speaking order are merely procedural aspects.

As per Rule 31 as mentioned above, every employer is required to pay/deposit "contributions within 21 days of the last day of calendar month in which the contribution falls due" . Therefore, in my opinion, from 22nd day, the interest and damages becomes due and payable under above Act and Rules/Regulations framed therein. ( It can extend to one day in case 21st day is Sunday). There is separate time limit of deposit in respect of other circumstances viz. permanent closure of factory.

(e): Amendment in Section 45AA: The provisions are clear and self-explanatory. However, please see Regulation 31-D of ESI (General) Regulations, 1950,( ammended w.e.f. 01/2011).

2. As an employer or an officer of any company/employer, I will suggest you to consult amended up-dated ESI Act, 1948 and rules/regulations framed thereunder.
12th November 2014 From India, Noida
Respected Mehta & Mohankumar Sir

Further inputs on the threads. We have been covered under ESI from Sep 2009. In Feb 2012 SSO has done inspection for the period Feb 2010 till August 2012 , C-18 received and dues as determined - EC & LC are paid in absence of 45A Order.

As submitted by you herein above that it will mean that employer accepts the liability and therefore a speaking order is issued or not subsequently is of no importance.

Now we have received the another Notice dated 16th Dec. 2013 from Joint Director Vigilance under Section 45(4) of ESI Amendment Act 2010.

Q :- For the same period - Feb 2010 - Mar 2013,can inspection be carried out again, even though we have paid the Liability as mentioned above.?

Date of received of C- 18 & 45A of the second inspection are as follow :-

Second Inspection Notice received on 16.12.2013 as stated above

Date of C-18 issued : 18/07/2014 (Received by us on 23/07/2014)

Date of Order u/s 45A : 16/10/2014 (Received by us on 17/10/2014)

Period covered : 01/04/2009 to 30/03/2012 ( For short payment - EC )

Period covered : 01/04/2009 to 30/03/2011 ( LC For casual/contractor's employees - Labour Charges under ESI Sec 2(22). )

Further 45 A Order stipulate if not satisfied to make appeal under Sec 45AA with in 60 days.

Need help on the captioned subject matter. As per the ESI Amendment Act 2010, which has been notified and it has come in to effect w.e.f. 01-06-2010.

Under Amendment Act of ESI,

Q -Under Amendment Section 45(4) of ESI , Joint Director / Deputy Director Vigilance has got power of Test Inspection / Re- Inspection.

Q -From Which date the amount of Interest and Damages are derived / charged by the ESI Authority - From the date of receipt of C- 18 Notice OR from the Order received under 45A.

Q -However as per Amendment Act under Section 45AA of ESI, 60 days are given to make an appeal before Appellate Authority - RO / SRO OR Filing the case before EI Court.

From your view point which is the preferred option either to make Appeal OR to file case before EI Court.

Q If we pay 25% OR 50% as the case may be as stipulated in the Act and Appeal is admitted, During pendency of appeal for final hearing Can ESI Authority insist for the interest and damages as well as the amount of liability determined during inspection ?

Q If we preferred Appeal before RO / SRO by paying 25% of demand liability & the Final Order of Appeal is not in our Favour to which Forum further appeal lies either EI Court OR High Court ?

Q If before EI or High Court we loose from which date the Authority will charge the Interest / Damages Amount?

Please give your valuable in puts on the above submission seriatim.

Regards,

Azim
15th November 2014 From India, Mumbai
Q -Under Amendment Section 45(4) of ESI , Joint Director / Deputy Director Vigilance has got power of Test Inspection / Re- Inspection.

yes. but you might have already got clearance from sso. else these jd dd can reinspect.

Q -From Which date the amount of Interest and Damages are derived / charged by the ESI Authority - From the date of receipt of C- 18 Notice OR from the Order received under 45A.

this is from actual contribution date. ie. you missed some contri for mar 2014 and agreed to pay in sep 2014 and paid in 0ct 2014. then the damages and interest will be calculated for the period from march 2014 to oct 2014.

Q -However as per Amendment Act under Section 45AA of ESI, 60 days are given to make an appeal before Appellate Authority - RO / SRO OR Filing the case before EI Court.

this is only appeal and you can not cancel the inspection or void the order issued. pls do not react in such a way you never made mistake. it will cost you much much more.

From your view point which is the preferred option either to make Appeal OR to file case before EI Court.

dont go for case. they will screw like hell starting from balance sheet attendance p&l accident report 24Q 119c etc.,

Q If we pay 25% OR 50% as the case may be as stipulated in the Act and Appeal is admitted, During pendency of appeal for final hearing Can ESI Authority insist for the interest and damages as well as the amount of liability determined during inspection ?

yes

Q If we preferred Appeal before RO / SRO by paying 25% of demand liability & the Final Order of Appeal is not in our Favour to which Forum further appeal lies either EI Court OR High Court ?

already answered

Q If before EI or High Court we loose from which date the Authority will charge the Interest / Damages Amount?

already answered

P.S. PLEASE INBOX ME I WILL HELP YOU TO GET RID OF.


17th November 2014 From India, Chennai
Dear sir,
we received C18 for interest & damages, after meeting with esic authority, they confirm that we have to pay only interest. we need confirmation from esic that in future esic not demand for damages. how i write a letter to esic for damages. send sample letter for the same.
11th September 2017 From India, Mumbai
1. Sir, the form C-18 is only a claim form for contribution and interest. It has no relevance with damages. For claim of damages, the appropriate form as named by ESIC is D-18.
2. I think, once there is delay in payment of contribution, the amount of interest as well as damages is payable and there is no escape from said claims. It is, another aspect that the said department initiates such claims in the form of affording personal hearing to the employers. Hope, you may assess the position with reference to the rates of interest as well as damages as mentioned in ESI (Central) Rules and in relevant Regulations.
11th September 2017 From India, Noida
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™