Sir(s),
Following facts as desired by Sh. Saswatabanerjee in his earlier comments have not been replied by the starter of this thread:-
-" Where is the work being done, what type of work is it."
"Is that place covered by ESIC"
In addition, various other questions will also arise viz.-
1. Whether the contractors take semi-finished articles from the office/premises of company and after doing some finishing/job work on said goods, returns the same to principal employer. If so, whether there are gate-passes for such shifting of goods. If required by law, whether the contractors have their separate numbers for sales tax, excise etc.
2. Whether the contractors have their own premises where they work, whether the said premises are registered under shop and commercial establishment Act/rules framed thereunder.
3. Whether such contractors are also doing work independently for other similar type of units.
4. How the job charges paid to these contractors are being booked/reflected in the accounts books of the principal employer is also important. Whether the said charges are shown labour charges, wages etc.?
The coverage/non-coverage of any contractor with principal employer depends upon the facts of each case separately. It is for the assessing authorities to decide keeping in view the facts bases on verification of records. Therefore, in my opinion, it will be more better if the matter is referred to the appropriate Regional/Sub/Divisional Office of the ESIC with full facts and opinion of employer for decision on the issue.