Guidance English Medium School vs Asst. Director (Revenue) Esi
2023 Latest Caselaw 2583 Ori

             IN THE HIGH COURT OF ORISSA AT CUTTACK

                           W.P.(C) No.3314 of 2018
                           (Through hybrid mode)

        Guidance English Medium School       ....             Petitioner

                                     Mr. Somanath Mishra, Advocate
                                  -versus-

        Asst. Director (Revenue) ESI         ....      Opposite Parties
        Corporation, BBSR and others

                                              Mr. A.P. Ray, Advocate



                  CORAM: JUSTICE ARINDAM SINHA
                                 ORDER

Order                           29.03.2023
No.
  6.    1.      Mr. Mishra, learned advocate appears on behalf of petitioner

and submits, his client is a School. By impugned order made under

section 45-A of Employees' State Insurance Act, 1948 there was

determination made without full opportunity to his client. He draws

attention to impugned order dated 22nd September, 2017 to submit,

authorized representative attended personal hearing on 1st September,

2017 and said, inter alia, balance sheet for F/y 2015-16 was available

with the Chartered Account and hence, same could not be brought at

the personal hearing. Furthermore, salary records from July, 2014

onwards were not readily available due to absence of the accountant

and also the attendance register. In those circumstances, without

// 2 //

allowing opportunity to produce those documents, there was

determination made on calculation of wages at 25% of the total

amount booked under the heads of expenditure, for determination of

the contribution. He submits, impugned order be set aside and for his

client to have opportunity to produce the documents, for determination

on actuals.

2. Mr. Ray, learned advocate appears on behalf of the corporation

and on query from Court submits, determination under section 45-A is

in the nature of best judgment as under taxing statutes. He relies on

judgments of the Supreme Courts; (i) Employees' State Insurance

Corporation v. F. Fibre Bangalore (P) Ltd. reported in (1997) 1

SCC 625, paragraph-4; and (ii) E.S.I.C. v. C.C. Santhakumar

reported in 2007 LAB I.C. 597, paragraph-4.

3. It is noticed that under section 144 in Income Tax Act, 1961

there is mandate for best judgment assessment, while under section

45-A, the corporation may determine the contribution.

4. List on 12th April, 2023.

(Arindam Sinha) Judge Sks