Bhat,J.

1. Regional director, E.S.I. Corporation, Trichur being aggrieved by the judgment of the E. S. I. Court, Calicut in E.I.C. No.53/83 has filed this appeal.

2. The respondent is a firm engaged in the manufacture and sale of Handloom textile goods. Respondent has a factory of its own covered by E. S. I, scheme. Appellant by letter dated 18-11-1981 sent to the respondent required the latter to pay E. S. I, contribution for a sum of Rs.4,82,040.28. Bulk of this account represented wages paid on account of "outside weaving charges" and "outside winding charges". Admittedly these amounts have not been taken into account for payment of contribution. This was followed by letter dated 23-2-1983 to the same effect. Respondent sent a reply dated 20-4-1983 denying liability and followed it up by filing an application under S.75 of the Employees State Insurance Act before the E. S. I. Court seeking declaration that the direction of the appellant is illegal and unenforceable and to restrain the appellant from recovering the amount by way of. revenue recovery proceedings. The E.S.I, court accepted the contention of the respondent and allowed the application. Hence this appeal.

3.