Facing a Section 7A Order Under EPF Act: How Do We Appeal and What Steps Should We Take?

Our company is situated in Chennai and is engaged in the business of composite contracts (involving both material and labor). The Assistant P.F. Commissioner has issued an order under Section 7A, demanding Rs. 14 lakhs on various account numbers from April 2010 to August 2012, citing "subterfuge on wages for the period from April 2010 to February 2012." We received this order by post on November 14, 2012.

Steps for Filing an Appeal

Can we appeal against this order? If yes, where should we file it, and what steps should we take immediately? Should any reply be filed on an immediate basis? Please guide me in this regard. Awaiting your immediate reply.

Thanks,
A. Karthikeyan

I request you to provide the entire contents of the demand letter before any guidance can be given. Was this letter issued after giving you adequate opportunity to present your side, or was it done unilaterally? When the inspection took place, what remarks did the inspector make, and what was your response? What documents were submitted by you, etc.

Regards,
Preetam Deshpande

You can very well file an appeal against the order before the Appellate Tribunal known as "The Employees' Provident Funds Appellate Tribunal." To know the Appellate Tribunal of your region, please check the Central Government notification in the Official Gazette for the constitution of the Tribunal. One can file the appeal within 45 days of the order in the prescribed Form 9. One more thing, your appeal will be entertained by the Tribunal only after the deposit of 75% of the amount due as determined. However, the Tribunal is empowered to waive or reduce the amount if the reasons submitted by the applicant are recorded in writing.

Regards,
VP Jain