JUDGMENT

Sabharwal, J.-Leave granted.

2. The appellant under a Production Incentive Scheme pays to its workers production incentive at the rates specified in the Scheme besides normal wages. For the purpose of calculating contributions towards Employees State Insurance Fund, the payment of production incentive by the appellant to its workers is not treated by it as wages within the meaning of the term as defined in Section 2(22) of the Employees State Insurance Act, 1948 (for short the Act ). The respondent-Employees State Insurance Corporation (for short the Corporation ) treating the said payment as wages issued a demand to the appellant for payment of contributions towards the Employees State Insurance Fund. This led to filing of an application under Section 75 of the Act by the appellant before Employees Insurance Court challenging the said demand. The said Court allowed the application and quashed the demand. It held that the payment was made quarterly and was not wages under the Act as it did not fall either under the first part of Section 2(22) or under third part thereof. The payment made by the appellant, it was held, did not fall under the first part of the d