K.M. Joseph, J.

1. This is an Appeal filed under Section 82(2) of the Employees' State Insurance Act, 1948 (hereinafter referred to as the Act). The appellant challenges the order passed by the Insurance Court in I.C.No.111 of 2003 which is an Application filed by the respondent herein challenging the proceedings under Section 45A of the Act. The proceedings under Section 45A arose from a demand made for additional contribution from the respondent for having paid certain sums to its employees by way of production incentive for the period September, 1999 to March, 2000. The respondent is a Public Sector Unit of the Government of Kerala. The substantial questions of law framed are as follows:

"(i) Whether the declaration made by the learned EI Court that the production incentive paid by the applicant is not wages and hence no ESI contribution is payable in this regard and all the findings made in its support are not erroneous, perverse and against the definition of wages under Section 2(22) of the ESI Act ?

(ii) Whether the production incentive compelled to be paid by the applicant to the employees on the basis of an agreement arrived at between the Management and Union is not a