Damages u/s 14 b of misc. & pf act
VINOD KUMAR JOSHI
(Querist) 29 August 2014
This query is : Resolved
Dear Sir,
we have rcvd. notice of 14 b for delay in pf due deposited. In notice two payment are there for one month . In one challan there is minor penalty is related to us for which we have submitted bank certificate. The another challan is not belongs to us. But in PF EDP data the same is related to us. Astt. PF commissioner pass the order. please guide what we can do now?
regards
Vinod K. Joshi
Devajyoti Barman
(Expert) 29 August 2014
You can challenge the order. However if the anomaly is of little amount, then better ignore it.
Kumar Doab
(Expert) 29 August 2014
>>> You can not challenge the order …………………you can appeal thus you can otherwise challenge the order by appeal……………………………………..before the Competent Authority and sought for supply of the calculation sheet the basis on which the computation had been made so that you can reconcile the accounts.
"7I. Appeals to Tribunal. -
(1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Central Government or any authority, under the proviso to sub- section (3), or sub-section (4) of section 1, or section 3, or sub- section (1) of section 7A, or section 7B except an order rejecting an application for review referred to in sub-section (5) thereof, or section 7C, or section 14B, may prefer an appeal to a Tribunal against such notification or order.
(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and be accompanied by such fees, as may be prescribed."
>>> If you have just supplied the Bank Certificate but have not requested to supply the calculation sheet then you have probably erred…………………………………………looking into long term implications.
Does the order states that the report/calculation sheet is attached?
If yes,…………………………….but it is not annexed ……………………….. you should submit that………………….. report stated to have been annexed with the calculation had not been sent along with the notice and the same may be provided to you to reconcile the accounts.
If NO………………………..you may demand it.
Thus later you can claim that it was obligatory on the part of the third respondent to provide the same so that the accounts could be reconciled and a proper view could be taken as regards the computation.
Section 14B which provides for recovery of damages…………………………. stipulates that before levying and recovery of such damages, the employer shall be given a reasonable opportunity of being heard.
Section 14B confers power on the Competent Authority under the Act to recover damages.
Section 14B has been enacted to penalize the defaulting employers as also to provide reparation for the amount of loss suffered by the employees. It is not only a warning to employers in general not to commit a breach of the statutory requirements but at the same time it is meant to provide compensation or redress to the beneficiaries, i.e., to recompense the employees for the loss sustained by them. The entire amount of damages awarded under Section 14B except for the amount relatable to administrative charges is to be transferred to the Employees' Provident Fund.
>>> Section 7A (3) provides that no order shall be made under sub-Section (1) unless the employer concerned is given a reasonable opportunity of representing his case.
The process entails …………………………….the first one step is the initial determination and, therefore, an opportunity of hearing is given and the second one which relates to imposition of damages there is discretion on the part of the authorities but as far as the levy of interest is component is concerned, it being only an arithmetical calculation the question of affording an opportunity to the employer does not arise.
>>> You must be aware that though an appeal lies against recovery of damages under Section 14B of the Act, no appeal is provided for against imposition of interest as stipulated under Section 7Q.
Later the issue that may arise for consideration is when in independent exercise of power under Section 7Q a demand comes into existence, whether the principle of natural justice would get attracted or not.
Please show all docs to your able labor Consultant/lawyer/law firm well versed with PF matters and proceed under his expert advice.
