Exemption notification 14/2013-ST is applicable if less than 250 employee is working in factory

[SACHIN PAWAR]

Sir/Madam,

My query is regarding applicability of Exemption notification 14/2013-ST dt. 22.10.13. Our factory is register under the Factories Act, 1948 and working, contractual employees are less than 200 or near about 200. As per factory act maintained a canteen facility to employees is not mandatory. But our management is providing A/C canteen facility to all employees at subsidies rates. Does exemption notification 14/2013-ST dt. 22.10.13 meant that to get exemption canteen must run as per Factories Act, 1948 in which more that 250 employees required. Can we avail exemption under this notification even though less than 250 employees are working in factory. If we carefully read notification we can derive meaning that factory should be cover as per factory act 1948 and not necessary that canteen should run as per Factories Act, 1948.

AI Summary

Exemption Notification 14/2013-ST does not apply to voluntary canteens in factories with fewer than 250 employees. A query was raised regarding the applicability of Exemption Notification 14/2013-ST for a factory with fewer than 250 employees. The factory provides a subsidized canteen, although it is not mandatory under the Factories Act, 1948, which requires a canteen only if there are more than 250 employees. Two responses clarified that the exemption applies only to mandatory canteens under the Factories Act, which is not the case for this factory. Therefore, the factory does not qualify for the exemption as the canteen is voluntarily maintained, not required by law.