S.R. BRAHMBHATT, J.

1. Heard learned advocates for the parties.

2. Special Civil Application No. 2074 of 2000 and Special Civil Application No. 1401 of 200 have been interalia containing the challenge to the orders dated 25.8.1999 and 21.10.1999 respectively passed by the authorities under Section 7A as well as Section 7D of The Employees' Provident Funds and Misc. Provisions Act, 1952 (hereinafter referred to as 'the Act' for short), holding and confirming that the establishment i.e. petitioner in Special Civil Application No. 2074 of 2000 is liable to make contribution equivalent to the cash value of food concession being available to the employees in the canteen run by M/s. Deepak Nitrite Limited Credit Cooperative and Multi purpose Co-operative Society (society).

The petitioner of Special Civil Application No. 1401 of 2000 are the employees and office bearers of union and by this petition, they have challenged, as stated hereinabove, the aforesaid two orders and in addition thereto, prayed that the employer be restrained from withdrawing its subsidized food facilities on account of aforesaid two impugned orders passed by the authorities under the provisions of the Act, which have been challenged by both the petitioners in these petitions and hence they were heard together and it being disposed of by this common judgment and order.

The Special Civil Application No. 3431 of 2000 is preferred by Lakhanpal National Ltd. challenging the order dated 27.9.1999 passed by the respondent Commissioner and also the order dated 31.1.2000 passed by the PF Appellate Authority in Appeal, which was preferred by the petitioner against the order dated 27.9.1999 and by said impugned orders, the petitioner Company was directed to deposit PF contribution on the amount of food concession as alleged and claimed by the respondent authority, paid by the petitioner company to the employees.

3. Facts in brief leading to filing these three petitions as could be culled out from the respective memos deserve to be set out as under:

The petitioner in Special Civil Application No. 2074 of 2000 is an employer establishment governed by the provisions of Act and has been alloted PF Code No. 5278. The manufacturing activities are carried out in three shifts in the establishment. The petitioner wanted to provide canteen facility for its employees, staff members and guests visiting the establishment. The said facility was therefore, made available to the workmen/establishment and the said canteen was run by cooperative society known as M/s. Deepak Nitrite Limited Credit Cooperative society. The food items were subsidized by the petitioner as a welfare measure as the factory was situated at a distance of about 25 Kms. from Vadodara city. The establishment received notice under Section 7A of the Act dated 12.5.1994 for determining the question as to non-deduction of PF contribution on cash value of food concession and some other aspects. This notice ensued detailed inquiry. The establishment defended its stand and contended that the canteen facilities and subsidized food items or subsidy in the food items being provided to the employees, staff members and guests, may not be treated as the part of dearness allowance and be made exigible cash value on any food concession allowed to the employee i.e. the provisions of explanation (1) under Section 6 of the PF Act. The reliance was also placed upon the definition contained in Section 2(b) “basic wage” and contended that there specific explanation on such items from the purview of 'basic wages'. It is required to be noted at this stage that the Area Enforcement Officer, Sub-regional Office, Baroda vide his report dated 21.6.1999 also unequivocally opined that the coupons given to the employees cannot form part of the wages and therefore, there exists no liability for PF deduction. The Competent Authority after elaborate discussion on the contentions and grounds, came to the conclusion that the activities of offeri