JUDGMENT :

Ravi Nath Tilhari, J.

Heard Sri Venna kalyan Chakravarthi, learned counsel representing Sri U.R.P.Srinivas, learned Standing Counsel for the appellant-ESI Corporation.

2. No representation for the respondents.

3. This appeal under Section 82 of the Employees’ State Insurance Act, 1948 (in short ‘ESI Act’)has been filed by the Regional Director of ESI Corporation challenging the order dated 30.03.2007 in ESI O.P.No.75 of 2005 passed by the Principal Senior Civil Judge, Nellore.

4. The respondent No.1 – M/s.Sri Ramakrishna Rice Mill filed petition being ESI O.P.No.75 of 2005 under Section 75 of ESI Act with the prayer to declare that the said rice mill was not liable for coverage under the provisions of the ESI Act and to set aside the orders dated 02.01.2003 under Section 45A; dated 06.01.2003 and dated 24.03.2005 under Section 45G of the ESI Act, with further directions to the respondents therein (the present appellants) to refund the amounts together with interest at 6.69% per day.

5. The Respondent No.1 was a registered partnership firm which commenced doing milling of paddy by converting into rice and broken rice, bran and husk in the year 1980. It was its case that since