The question involved in this appeal is whether travelling allowance paid to an employee as a consolidated amount would constitute 'wages' within the meaning of Section 2 (22) of the Employees' State Insurance Act, 1948. The Employees' Insurance Court held that it does not form part of wages.

2. The learned counsel for the appellant relied on the decision of a learned Single Judge in Insurance Appeal No.40 of 2007. In that case, the question which arose for consideration was whether conveyance allowance given to the employees under the terms of the contract of employment becomes part of the wages. Relying on the decision of the Karnataka High Court in M/s. Rajashree Cement v. Deputy Director (I), ESI Corporation (2004 LAB 1C 2244), the learned Single Judge held that conveyance allowance given to the employees under the terms of contract would form part and parcel of wages within the meaning of Section 2 (22) of the Act and it shall be taken into consideration for the purpose of fixing the ESI contribution. The Karnataka High Court relied on the decision of the Hon'ble Supreme Court in M/s. Harihar Polyfibres v. The Regional Director, E.S.I. Corporation (AIR 1984 SC 1680) an