Revenue Recovery

Revenue Recovery Machinery

The Amendment Act 29 of 1989 inserted Sections 45(C) to 45 (I) in ESI Act effective from 01.09.1991 by which the Revenue Recovery Machinery came into existence under the umbrella of E.S.I. Corporation. Simultaneously Regulation 31-B and Section 85-B were also amended to authorize recovery of interest and damages under Section 45 C to 45 I.

Recovery Officer :

The Recovery Officer is appointed by notification in the Government of India, Official Gazette as per Section 45(I) (b) of the Act to exercise the powers of the Recovery officer under ESI Act1948. The office of the Revenue Recovery Officer of BIHAR situated at first floor, Panchdeep Bhawan, 1-Jawahar Lal Nehru Marg, PATNA 800001. The jurisdiction extends all over Bihar.

* Powers of Recovery Officer :

Recovery Officer, appointed under Section 45( I) (b) of the ESI Act has been empowered to recover ESI Contribution, Interest and Damages determined under the provisions of Section 45 A, Regulation 31 A, under Section 85 B (I) and Regulation 31( C ) of the ESI Act. Such recoveries are made under the provisions of Section 45( C) to 45( I ) of the Act, provisions contained in second and third schedule to the Income Tax Act, 1961 (43 of 1961) and Income Tax (Certificate Proceedings) Rule 1962 as amended from time to time, with necessary modifications/substitutions of certain words referred as arrears.

For effecting such recoveries, the Recovery Officer issues Notice of Demand Form CP allowing 15 days time to make compliance thereof. In the event of failure to comply with such Notice, the Recovery Officer follows one or more of the following modes of recovery :

  • Attachment and sale of the movable and immovable property of the factory or establishment/Principal/Immediate employer.
  • Arrest of the Employer and his detention in prison.
  • Appointing a receiver for the management of the movable and immovable property of the factory or establishment / Principal / Immediate employer.

The Recovery Officer in the discharge of his functions under the aforesaid provisions is deemed to be acting judicially within the meaning of JUDICIAL OFFICERS’ PROTECTION ACT 1850 (18 of 1850) as amended in Rule 82 of the second schedule to Income Tax Act, 1961.