Dear Seniors, Can you please guide me on Section 7C of the EPF Act. If anybody has judgement on section 7C. Its urgent, so please reply soon. Regards, Arihant
From India, Surat
41From India, Surat
Dear Arihant
Sec. 7-C emplowers the P.F.Authority to re-open a case within five years of passing an order under Sec.7-A or 7-B(after reviewing order passed under Sec.7-A), if he finds latter(after passing orders under sec.7A or 7B) that some amount has escaped from his notice (whilch also falls due )while passing orders under Sec.7-A or 7-B irrespective whether such escape from his notice is either due to non production of records bfore him by the employer or not.
while proceeding to redetermine the amount due after reopening the case, he should give hearing to the employer.
Trust I have made myself understood.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Sec. 7-C emplowers the P.F.Authority to re-open a case within five years of passing an order under Sec.7-A or 7-B(after reviewing order passed under Sec.7-A), if he finds latter(after passing orders under sec.7A or 7B) that some amount has escaped from his notice (whilch also falls due )while passing orders under Sec.7-A or 7-B irrespective whether such escape from his notice is either due to non production of records bfore him by the employer or not.
while proceeding to redetermine the amount due after reopening the case, he should give hearing to the employer.
Trust I have made myself understood.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
This follows section 7 A and section 7B. Section 7A empowers the PF authorities to call for records to determine the PF dues of an employer. Accordingly an order will be passed and the employer will be asked to pay the amount so determined. As per section 7B the employer can call for a review of the amount assessed by the authorities. Accordingly a fresh demand notice will be sent to employer. Section 7 C gives the authorities right to reassess the amount determined as per section 7A or section 7B if the PF authorities have reasons to believe that the there are some more amounts escaped from the original assessment or review assessment. Therefore, section 7C is a right conferred on PF organisation to reassess the amounts determined under 7A enquiry or 7B review.
Section 7C being right under the Act itself no judgement is required to establish the rights of PF authorities.
Regards,
Madhu.T.K
From India, Kannur
Section 7C being right under the Act itself no judgement is required to establish the rights of PF authorities.
Regards,
Madhu.T.K
From India, Kannur
Dear Experts,
Thanks for fast reply. Recently I have heard about 7C case in Delhi H.C. in which some obj. has been taken regarding Officer who has passed the order under Sec. 7A / 7B can assessed under section 7C. Also want to know that the Employer doesn't received any related documents/ material from PF authority on which section 7C is initiated. Can Employer has right to avail the documents on which section 7C is initiated?
Regards,
Arihant
From India, Surat
Thanks for fast reply. Recently I have heard about 7C case in Delhi H.C. in which some obj. has been taken regarding Officer who has passed the order under Sec. 7A / 7B can assessed under section 7C. Also want to know that the Employer doesn't received any related documents/ material from PF authority on which section 7C is initiated. Can Employer has right to avail the documents on which section 7C is initiated?
Regards,
Arihant
From India, Surat
Sec.7-C itself makes it mandatory that the P.F Authority while re-opening and reassessing P.F dues that were already determined under Sec.7-A or 7-B on the basis of any fresh evidence, he is required to hear the employer before passing any order under Sec.7-C as per the principles of naturaljustice which means the employer is entitled to have an inspection of all such material relied by P.F under Sec.7-c and make his submissions there on, failing which the order is not sustainable. Sec.7-C leaves no doubt about this right of the employer.
B.Saikumar
H R & Labour law Advisor
Mumbai
From India, Mumbai
B.Saikumar
H R & Labour law Advisor
Mumbai
From India, Mumbai
Dear Experts,
Whether APFC can issue arrest warrant under section 7A(2) if the Owner fail to attend the hearing for last some of the dates in Section 7C?
Whether both section 7A & 7C are independent with each other or not?
Regards,
Arihant
From India, Surat
Whether APFC can issue arrest warrant under section 7A(2) if the Owner fail to attend the hearing for last some of the dates in Section 7C?
Whether both section 7A & 7C are independent with each other or not?
Regards,
Arihant
From India, Surat
Both the sections are independent but interrelated. Under section 7A(2) the APFC has the right to call the owner for giving evidences and in such enquiry he will enjoy the powers of Civil Court. He can summon (a 7A notice itself is a summons) owner and if he fails to attend, he can determine the amount payable or escaped (in the case of 7C) and direct the owner to pay the amount. In case he does not turn up and pay the amount, he can proceed with revenue recovery proceedings and simultaneously he can issue warrant also. Practically, sections of Indian Penal Code for cheating and misappropriation are attracted only when he has collected PF from the employees but has not deposited the same, or has failed to deposit the employees' share of contributions.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Madhu T. K.
Thanks for the reply. I have got query regarding section 7C, means the APFC who had not given order under Section 7A and initiate Section 7C on the Establishment. The case was under section 7C & APFC initiated arrest warrant under section 7A(2), how it's possible as there is no ground of escaped amount, nor any dues are remaining to pay by the Establishment. As what I am understanding both the section are independent. but not interrelated. Also in Section 7C the Offcier has not said whether the case is under Section 7C(A) or section 7C(B).
Arrest warrant is issue on the ground to attain hearing with the documents as per their requirement. On this ground whether arrest warrant can be issue by the APFC.
Regards,
From India, Surat
Thanks for the reply. I have got query regarding section 7C, means the APFC who had not given order under Section 7A and initiate Section 7C on the Establishment. The case was under section 7C & APFC initiated arrest warrant under section 7A(2), how it's possible as there is no ground of escaped amount, nor any dues are remaining to pay by the Establishment. As what I am understanding both the section are independent. but not interrelated. Also in Section 7C the Offcier has not said whether the case is under Section 7C(A) or section 7C(B).
Arrest warrant is issue on the ground to attain hearing with the documents as per their requirement. On this ground whether arrest warrant can be issue by the APFC.
Regards,
From India, Surat
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