5.The case of the Appellant is that the establishment disputed the coverage under E.S.I. Act before this Court and this Court has confirmed the applicability of the E.S.I.Act to the establishment and passed orders, confirming the coverage as per order, dated 14.11.1994 and copy of the same order was received in by their letter TN/INS/C-18/57/12484/10/481/2000, for the period from 01.01.1991 to 30.09.1999 amounting to Rs.7,58,898/-on wages paid for the said period and fixed personal hearing on 17.05.2000. On the basis of the enquiry held, the Deputy Director, E.S.I. Corporation, Madurai, has passed an order on 04.09.2000 under Section 45(A) of E.S.I. Act and fixed the liability towards E.S.I. Contribution at Rs.4,01,534/-. The petitioner has immediately remitted the same on 18.09.2000. This amount was paid only by the employer. Neither the employer nor the employees availed any of the benefits provided under the E.S.I. Act at any time. The petitioner has fully paid the E.S.I. Contribution of Rs.4,01,534/-within 7 days of the orders u/s 45-A of the E.S.I. Act, received on 12.09.2000. But, after 3-years, the Joint Director has issued a notice D-18 under reference 57-12484-10-MDU/SRO/INS-I, dated 10.10.2003 levying a sum of Rs.2,97,526/-towards damages. Therefore, the order of the Joint Director, E.S.I. Corporation, Madurai, levying damages of Rs.2,97,526/-under Section 85(B) of E.S.I. Act, dated 11.12.2003 has to be set aside. Petition has to be allowed.
