The Supreme Court has stayed a notice by Provident Commissioner asking Godrej & Boyce Manufacturing Company (GBMCL) to pay a penalty of around Rs 22.49 lakh for default in making PF contributions.
The company had set up two independent manufacturing units in Mohali, Punjab and Mumbai in March 1996 and 1997. The Commissioner had refused the company's plea for exempting its Mohali unit from making PF contributions under Section 16 (1)(d) of PF Act 1952.
Godrej submitted the notice was illegal, unjustified and uncalled for as the matter was likely to be decided soon by the Supreme Court.
According to Godrej & Boyce since the matter is pending before the apex court.
After Section 16 (1)(d), which dealt with the exemption clause, was deleted in 1997 with prospective operation, the company had been regularly depositing PF contributions since September 1997 under the Act, counsel Gopal Singh stated.
Godrej had moved the apex court challenging the Punjab and Haryana High Court order that dismissed its exemption plea in 2005. As the apex court had refused to stay the recovery notices, the PF authorities in 2005 had recovered more than Rs 20.55 lakh from GBMCL's bank account, the application stated.
