( 1 ) THIS is an apeal under S. 82 (2) of the Employees' State Insurance Act, 1948 (hereinafter called 'the Act') by the Regional Director, Employeeg state Insurance Corporation, Bangalore, against the order of the Employees state Insurance Court, Harihar at Bangalore dt. 19-2-1973 made in esia-3 of 72, allowing the application of the Mysore Kirloskar Ltd. Respondent (hereinafter called 'the-Company') and declaring that the incentive payments made by the Company to its employees under the incentive scheme are not 'wages' as defined under the Act and that ESI contributions are not to be levied on such payments.

( 2 ) ESI Scheme was applied to the different units of the Company in different years. The Company has been collecting the contributions from its employees on the wages payable under the terms of employment and crediting the same to the ESI Corporation together with the employer's contribution. Disputes arose between the Corporation and the Company on the Company making contributions on the incentive payment also, the the incentive bonus paid to its employees with effect from 1-11-1971. Since the appellant over-ruled the objections of the Company and insiste