Page 116 - GSTL_3rd September 2020_Vol 40_Part 1

50 GST LAW TIMES [ Vol. 40
7. It is necessary to examine and understand the legal status and the or-
ganizational function of the appellant. The appellant is a statutory body
created by an Act of Parliament. They administer three schemes as men-
tioned hereinabove. The legal status and scope of functions of the appellant
are captured in the narrative of the Hon’ble Supreme Court in the judgment
dated 18-1-2012 in Civil Appeal No. 655/2012 in the case of Regional Provi-
dent Fund Commissioner v. The Hoogly Mills Company Ltd. and Ors., reported
in (2012) 2 SCC 489. The Hon’ble Supreme Court examined provisions of
EPM & MP Act, 1952 and role of the appellant and observed as below :
“22. From the aforesaid discussion it is clear that this case calls
for interpretation of certain statutory provisions. It is not disputed, and
possibly cannot be disputed, that the Act is a social welfare legislation.
The Act is one of the earliest Acts after the Constitution came into exist-
ence. Prior to its enactment, the requirement of having a suitable legisla-
tion for compulsory institutional and contributory provident fund in in-
dustrial undertakings was discussed several times at various tripartite
meetings in which representatives of the Central and State Governments
and employees and workers took part. Initially a non-official Bill on the
subject was introduced in the Central Legislature in 1948 and was with-
drawn with the assurance that the Government would consider the in-
troduction of a comprehensive Bill. Finally, the proposed legislation was
endorsed by the conference of Provincial Labour Ministers in January,
1952 and later on the same was introduced in 1952. This Court had occa-
sion to expressly hold that the said Act is a beneficial social welfare leg-
islation to ensure benefits to the employees. In the case of Regional Provi-
dent Fund Commissioner v. S.D. College, Hoshiarpur and others reported in
(1997) 1 SCC 241, this Court while interpreting Section 14B of the Act
held that the Act envisages the imposition of damages for delayed pay-
ment (paragraph 10 at page 244 of the report). This Court also held that
the Act is a beneficial social legislation to ensure health and other bene-
fits of the employees and the employer under the Act is under a statuto-
ry obligation to make the deposit. In paragraph 11, it has also been held
that in the event of any default committed in this behalf Section 14B
steps in and calls upon the employer to pay damages.
23. If we look at the modern legislative trend, we will discern
that there is a large volume of legislation enacted with the purpose of in-
troducing social reform by improving the conditions of certain class of
persons who might not have been fairly treated in the past. These stat-
utes are normally called remedial statutes or social welfare legislation,
whereas penal statutes are sometime enacted providing for penalties for
disobedience of laws making those who disobey, liable to imprison-
ment, fine, forfeiture or other penalty.
24. The normal canon of interpretation is that a remedial stat-
ute receives liberal construction whereas a penal statute calls for strict
construction. In the cases of remedial statutes, if there is any doubt, the
same is resolved in favour of the class of persons for whose benefit the
statute is enacted, but in cases of penal statutes if there is any doubt the
same is normally resolved in favour of the alleged offender.
25. It is no doubt true that the said Act effectuates the economic
message of the Constitution as articulated in the Directive Principles of
State Policy.
26. Under the Directive Principles the State has the obligation

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