The CPFC directed the RPFC to begin recovery proceedings under section 8F of the EPF and MP Act of 1952.
The respondents are ordered that there shall be no order directing the assessee to deposit the amount within the appeal period in any matter u/s. 7A in the future because it creates an embargo on the assessee's rights
The CPFC directed the RPFC to begin recovery proceedings under section 8F of the EPF and MP Act of 1952.
In February 2022, the Bombay High Court overturned the Regional Provident Commission’s coercive instruction to the employer to submit/deposit the recovery amount under Section 7A of the Employee Provident Fund and Miscellaneous Provisions Act 1952, and instead used the power conferred under Section 8F to recover the dues.
The Central Provident Fund Commissioner’s issued direction to the respondents under the case no. WP No 7814/2022 in the circular/order dated 30th May 2023 that no order she’ll be issued to employer to deposit recovery amount in any matter u/s. 7A, until the appeal time is over.
In its judgement dated 22.02.2022 in WP No 7814/2022 (Bhiwandi Nizampur Municipal Corporation versus The Regional Provident Fund Commissioner II, Regional Office, Thane), the Hon’ble Bombay High Court held as follows:
“9(b). The respondents are ordered that there shall be no order directing the assessee to deposit the amount within the appeal period in any matter u/s. 7A in the future because it creates an embargo on the assessee’s rights to avail of the remedies permissible under the EPF and MP Act, 1952.”
9(c). The respondent authorities are hereby directed that, in all situations arising under Section 7A Assessment, actions under Section 8F shall not be commenced until the appeal period specified in Section 7-1 has expired.
10. The Registrar (Judicial) is required to distribute this order to all Regional Provident Fund Commissioners in India, and the instructions must be strictly obeyed.”
The Hon’ble Supreme Court did not interfere with the Hon’ble Bombay High Court’s judgement dated 22.02.2022, instead dismissing the SLP filed under Dy No. 37088/2022 against the said ruling by order of 23.1.2023.
Given the above situation, the directions of the Hon’ble High Court should be strictly observed.
