2013 (10) TMI 1570 - SC - Indian Laws

Summary

Issues Involved:
1. Maintainability of an appeal against an order passed u/s 7Q of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
2. Violation of principles of natural justice in the computation of interest u/s 7Q.

Summary:

Issue 1: Maintainability of Appeal u/s 7Q
The Court examined whether an appeal lies against an order passed u/s 7Q of the Act. It was noted that Section 7I of the Act provides for appeals against certain orders but does not explicitly include orders passed u/s 7Q. The Court emphasized that the right of appeal is a creature of statute and cannot be assumed unless expressly provided for by the statute. The Court concluded that no appeal is provided for against the imposition of interest u/s 7Q, and thus, the conclusion of the learned Single Judge and Division Bench that an appeal would lie to the tribunal u/s 7I was not sustainable.

Issue 2: Violation of Principles of Natural Justice
The Court addressed whether the principles of natural justice were violated when the Assistant Provident Fund Commissioner issued a demand notice u/s 7Q without providing the detailed working of the interest amount. It was argued that the levy of interest is automatic and involves mere arithmetic calculation, thus not necessitating a hearing. However, the Court held that even in cases of automatic interest computation, errors could occur, and the affected party should have the right to file an objection regarding the computation. Therefore, the Court directed that the computation sheets be provided to the Appellant, who could then file objections, which the Competent Authority should address in a summary manner.

Conclusion:
The appeal was allowed to the extent that the judgment and order passed by the Division Bench and the learned Single Judge were set aside. The Court directed that the computation sheets be provided to the Appellant, who must deposit a further sum of Rs. 16,00,000/- within four weeks, failing which the entire amount would be leviable, and the right to file objections would be extinguished. No order as to costs was made.