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As per the provision u/s 45AA of the ESI Act, an employer who is not satisfied with the order referred to in section 45A, may prefer an appeal to an Appellate Authority within 60 days of the date of such order after depositing 25% of the contribution so ordered or as per the calculation whichever is higher with the corporation.

Many employers complained that several Appellate Authorities are remanding back the appeal to Authorized Officers without disposal of the issue by which employers have to suffer unnecessarily.

It was noted that remanding back of appeal filed u/s 45AA is a clear violation of provisions of the Act and referring back such appeals to authorized officers is defeating the very purpose of appeal u/s 45AA.

It has thus been now clarified that Appellate Authority shall pass a well-reasoned order u/s 45AA based on documents/records produced by the employer and will not remand back to the Authorized Officer.

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