Delayed PF/ESI deposit on a Sunday due date was condoned when paid on the next working day and disallowance was reduced.

Delayed deposit of employees' PF/ESI contributions was held not to justify disallowance where one due date fell on a Sunday and the amount was paid on the next working day. The Tribunal applied the principle in Section 10 of the General Clauses Act, 1897, treating payment on the first available working day as compliant in the circumstances. For the remaining contributions, the delay was only one day and was viewed as bona fide, as the assessee deposited the amounts at the earliest opportunity. The disallowance was deleted to the extent of the payment made after the Sunday due date, and the claim was allowed in part.

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Issues: Whether the disallowance made on account of delayed deposit of employees' contribution to PF/ESI was sustainable where one payment fell due on a Sunday and was deposited on the next working day.

Analysis: The due date for one contribution fell on Sunday, and the amount was deposited on the immediately following working day. The delay in the remaining payments was of one day. The Tribunal applied the principle that a delay of one day in such circumstances deserves condonation under Section 10 of the General Clauses Act, 1897, especially when the conduct showed bona fide compliance by depositing the amount at the earliest opportunity.

Conclusion: The disallowance was deleted to the extent of the amount deposited on the next working day after the Sunday due date, and the assessee's claim was allowed in part.

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