Time Limit for Determining Contributions
As per the second proviso to Section 45-A(1), the time limit of 5 years is strictly to be adhered to in determining the contributions and issuing speaking orders of the authorized officer. The said officer shall not ask for any records beyond the period of 5 years from the employer.
Notices for Payment of Interest on Delayed Contributions
Two notices have been received for payment of interest on delayed contributions for the year 2012-2013.
In one case, the ESI issued a show-cause notice in the year 2013 to pay interest on the delayed contribution, but no action was taken thereafter by the ESI. However, a demand letter was sent in the year 2022 to the employer.
In another case, the first interest payment notice on delayed payment was received in the year 2022 only, while the contribution pertains to the financial year 2012-2013.
Legal Defense Against Notices
Is there any defense for the employer against these two notices under Section 45-A, or will payment have to be made? Kindly suggest a detailed legal view on the subject.
From India, Delhi
Acknowledge(0)
Amend(0)
19As per the second proviso to Section 45-A(1), the time limit of 5 years is strictly to be adhered to in determining the contributions and issuing speaking orders of the authorized officer. The said officer shall not ask for any records beyond the period of 5 years from the employer.
Notices for Payment of Interest on Delayed Contributions
Two notices have been received for payment of interest on delayed contributions for the year 2012-2013.
In one case, the ESI issued a show-cause notice in the year 2013 to pay interest on the delayed contribution, but no action was taken thereafter by the ESI. However, a demand letter was sent in the year 2022 to the employer.
In another case, the first interest payment notice on delayed payment was received in the year 2022 only, while the contribution pertains to the financial year 2012-2013.
Legal Defense Against Notices
Is there any defense for the employer against these two notices under Section 45-A, or will payment have to be made? Kindly suggest a detailed legal view on the subject.
From India, Delhi
Acknowledge(0)Amend(0)
Under the ESI Act, Section 45-A, the time limit of 5 years is to be strictly adhered to in determining the contributions and issue of speaking orders of the authorized officer. The officer cannot request any records beyond this period from the employer.
Based on your query, it seems you have received two notices to pay interest on delayed contributions for the year 2012-2013.
1.0 For the first case where a show-cause notice was issued in 2013, but no further action was taken until 2022:
- 🚪 Under Section 45-A(1), if no assessment is made within 5 years, the claim becomes time-barred. Therefore, the employer can contend that the demand for interest is time-barred as no assessment was completed within the 5-year time frame.
2.0 For the second case where the first interest payment notice was received only in 2022 for contributions pertaining to 2012-2013:
- 🚪 Here again, the employer can argue that the period for which the interest is demanded is beyond the 5-year limit, making the claim time-barred as per Section 45-A(1).
🕵️‍♂️ Here is what you can do as the employer:
1️⃣ Respond to the notices with a letter stating your defense, referring to the second proviso to Section 45-A(1) of the ESI Act.
2️⃣ Consider seeking legal advice to ensure your defense is strong and well-articulated.
3️⃣ Keep all the records of your communications, notices, and responses for future reference.
4️⃣ If the ESIC does not accept your defense, you may need to approach the appropriate appellate authority.
Remember, every case has its specifics, and while general advice can be helpful, it's always advisable to consult with a labor law expert or lawyer.
From India, Gurugram
Acknowledge(0)Amend(0)
Based on your query, it seems you have received two notices to pay interest on delayed contributions for the year 2012-2013.
1.0 For the first case where a show-cause notice was issued in 2013, but no further action was taken until 2022:
- 🚪 Under Section 45-A(1), if no assessment is made within 5 years, the claim becomes time-barred. Therefore, the employer can contend that the demand for interest is time-barred as no assessment was completed within the 5-year time frame.
2.0 For the second case where the first interest payment notice was received only in 2022 for contributions pertaining to 2012-2013:
- 🚪 Here again, the employer can argue that the period for which the interest is demanded is beyond the 5-year limit, making the claim time-barred as per Section 45-A(1).
🕵️‍♂️ Here is what you can do as the employer:
1️⃣ Respond to the notices with a letter stating your defense, referring to the second proviso to Section 45-A(1) of the ESI Act.
2️⃣ Consider seeking legal advice to ensure your defense is strong and well-articulated.
3️⃣ Keep all the records of your communications, notices, and responses for future reference.
4️⃣ If the ESIC does not accept your defense, you may need to approach the appropriate appellate authority.
Remember, every case has its specifics, and while general advice can be helpful, it's always advisable to consult with a labor law expert or lawyer.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf