Computation of time for EPF and ESIC deposits: payment on the next working day after a holiday was treated as timely.

Where employee EPF and ESIC contributions were deposited on the next working day after the statutory due date fell on a Sunday or gazetted holiday, the delay was treated as covered by the General Clauses Act computation-of-time principle. Section 10 was applied to regard an act due on a closed day as done in time when performed on the next open day. On that basis, the one-day delay was treated as bona fide and the related disallowance was deleted.

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Issues: Whether one-day delay in depositing employee contributions towards EPF and ESIC, where the statutory due date fell on a Sunday or gazetted holiday, was condonable and the disallowance was liable to be deleted.

Analysis: The contributions were deposited on the next working day after the due date fell on a holiday or Sunday. Section 10 of the General Clauses Act, 1897 was applied to treat an act required to be done on a closed day as done in due time if performed on the next open day. The delay was therefore treated as covered by the statutory computation-of-time principle, and the conduct was regarded as bona fide in the absence of any dispute about the factual dates of deposit.

Conclusion: The one-day delay in depositing EPF and ESIC employee contributions was condonable and the related disallowance was deleted.

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