R.K.MERATHIA, J. - (1.) Heard the parties. Petitioner has prayed for quashing the demand issued by the recovery Officer (respondent No. 2) for the period January, 1980 to May, 1982.
(2.) Regarding the demand under Section 39(5) of the Employees State Insurance Act, (ES. Act for short), it is submitted that Section 39(5) of the Act was inserted by Section 12 of Act 29 of 1989, with effect from October 20, 1989 and therefore, the demand of interest for the period in question i.e. January, 1980 to May, 1982 is without jurisdiction. Mr. S. Das, appearing for the respondents, fairly conceded to this position.
(3.) Regarding the other demands, petitioner's contention is that by letter dated March 16, 1982 (Annexure-1), the Deputy Regional Director, Employees' State Insurance Corporation, Patna, informed the petitioner that the provisions of ESI Act were not applicable to it till a notification extending the applicability of the provisions of the ESI Act to the remaining areas of Deoghar is issued and about which petitioner will be intimated in due course. In reply, petitioner wrote a letter on July 24, 1982 (Annexure-1) saying inter alia that it has not deducted employees contribution prior to June 1, 1982 in view of Annexure- 1.;