Mr. Dhingra,
If you have a closer look at the circular floated by EPFO (from where the issue has started), you would understand they invoked certain judgments passed in certain cases like RPFC, Punjab Vs. Shibu Metal works, Crown Aluminium Works Vs. Workers Union, Kamani Metal works & Alloys, civil appeal in case of Air Friieght Limited Vs. in the State of Karnakata and Others.
It is a common phenomenon whenever such disputes take place, to quote the judgment or decree issued in favour or against that particular concept.
EPFO when they issued the circular, they quoted all the above cases justifying thier requirement of inclusion of all allowances in the basic wages and sought contribution on allowances.
When EPFO refers such cases, it is also possible for employers to quote certain court judgments supporting their claim. Therefore it is common for anyone to refer cases.
What I am trying to say is that there are different views in different forums and who is the deciding authority is what question now. When the Act is enacted in Parliament, whether EPFO have locus standi to issue such circulars and whether it has any merit. If EPFO initiates enquiry against employers and deals and passes separate orders for each and every enquiry initiated against such employers, and every employer has to approach High court / Supreme Court and get orders against such orders, where is the end? Therefore in my opinion, there should have been clear cut rule passed by Parliament w.r.t this issue with more clarity. Unless it happens, the EPF Tribunal, High Courts and Supreme Courts will be flooded with appeals and claims. How many of us (employer) / you are ready to spend your productive time in tribunals and courts?
Please refer the letter sent to EPFO, Delhi by Mr. H.L. Kumar, who is also an advocate like you, who is also running a big organization "Labour Law Reporter". I read the letter but I do not have the copy of the letter at this point of time. (I will post it later). Mr. Kumar sought certain clarifications with respect to this issue but I do not think he has got any reply from them till now.
The circular issued by EPFO and court judgments have been floating around only to confuse and complicate things further and there is no solution. In the whole process, the employers are harrassed and nothing more.
Balaji