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IN THE HIGH COURT OF ANDHRA PRADESH
DHIRAJ SINGH THAKUR, CJ, RAVI CHEEMALAPATI, J
Chakra Cements Ltd. – Appellant
Versus
Employees Provident Funds – Respondent
JUDGMENT :
Ravi Cheemalapati, J.
Assailing the orders dated 28.10.2024 passed by a learned single Judge in Writ Petition No.28392 of 2010, the petitioner therein, preferred this intra court appeal under Clause 15 of Letters Patent.
2. Through the order impugned, the writ petition filed by the petitioner seeking to quash the orders dated 25.07.2010 passed by Employees Provident Funds Appellate Tribunal in Appeal No. ATA No.545 (1) of 2024, was dismissed.
3. By orders dated 25.07.2010, the appellate Tribunal confirmed the orders passed by respondent no.2-The Regional provident Fund Commissioner, Guntur, whereby and whereunder the EPF contributions due from the petitioner establishment was determined at Rs.8,09,558.12 ps.
4. The facts that led to filing of this writ appeal, in brief, are that
(a) the appellant/ writ petitioner is a factory engaged in manufacture of cement with work force of more than 100 employees and hence it was covered by the provisions of the Employees Provident Funds & Miscellaneous Provisions Act, 1952 (For short, ‘the EPF Act’). The same was declared as sick industry and a reference was made to Board for Industrial and Financial Reconstruction (BIFR) under Sick Indus
The definition of 'employee' under the EPF Act includes contract workers, and dues must be determined based on identified beneficiaries.
Point of Law : Provident Fund is not a tax. It is an amount collectable to the benefit of an individual identified employee as a social welfare measure.
The authority must consider jurisdictional issues and provide specific findings on employee count and applicability of the Act when assessing provident fund dues.
The principal employer is responsible for ensuring provident fund contributions for contract workers, as they are considered employees under the Act.
The process of appointment of regular employees and apprentices are different, and the status of individuals as employees or apprentices should be determined based on the evidence presented.
The employer must ensure EPF contributions for all employees, including those employed through contractors, and must comply with principles of natural justice in assessment proceedings.
The definition of 'employee' under the Employees’ Provident Funds Act includes temporary employees, mandating employer contribution regardless of employment type.
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