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The Ministry of Home Affairs has issued a notification dated 27th May 2021extendind the Covid Containment measures till 30th June 2021.

In a Writ Petition filed by the Retailers Association of India the Bombay High Court made the following observations and issued consequent directions;

“3. One of the major grievance of the petitioner is that though under various SOPs issued by the State of Maharashtra including last SOP dated 13th April, 2021 and more particularly in clause 16, E-commerce is permitted only for supply of essential goods and services, various suppliers are supplying non-essential services also in gross violation of the said SOP dated 13th April, 2021. It is the case of the petitioner that though this violation is brought to the notice of the State Government, no action has been taken till date to stop this ongoing violation.

4. State Government is directed to file affidavit within two weeks from today and to indicate as to whether any incentives which were offered to the hawkers due to their sufferings during pandemic can be offered to the retail traders.

5. The State Government will also indicate the steps already taken or would be taken against those dealers, for supplying various non-essential items in violation of clause 16 of the SOP dated 13th April, 2021, if any. We direct that if the State Government finds any such violation, an action shall be immediately taken against those dealers and to stop such violation. ”

Copy of the order

At the time when the entire world is engulfed in COVID-19 pandemic, India has been proactively tackling the challenges through various measures undertaken by the Government – both at the Central and State level. Union Government has invoked its powers under Epidemic Diseases Act, 1897 and Disaster Management Act 2005 and is taking all possible steps to contain the spread of virus.

Large number of corporates and non-government organisations (NGOs) have come forward to help the state governments by donating COVID related material such as medical oxygen concentrators and related accessories, ventilators, vaccine, medicine etc. Similarly, many corporates have implemented policies for COVID-19 relief for employees. Under this, companies are undertaking COVID-19 vaccination programmes for the benefit of their employees and family members. As a part of the vaccination programme, companies enter into contract with third party healthcare service providers for administering the vaccine to employees and their family members.

Further, in certain cases, companies are procuring oxygen concentrators / cylinders (OCs) for the welfare of its own employees by making it available to them, as and when they need it. The OCs may be procured either locally or imported from outside India. Similarly, in these difficult times, quarantine facilities (either in owned or leased premises or in hotels) and online doctor consultation facilities are also facilitated by the employer to its employees.

With respect to the above measures taken by the employer, there are ambiguities relating to input tax credit (ITC) eligibility and taxability of certain transactions. The same are detailed in the attached representation.

The Workmen of Renault-Nisan, Wipro Infrastructure & MRF filed Petitions before the Hon’ble Madras High Court challenging the decision of the State Government to allow the automobile industry to function during the lockdown. They contended that the safety or health of the workment cannot be compromised to keep the units functioning. While directing the employers to file their affidavits, the Hon’ble High Court made the following observations:

“5. Prima facie, it appears that a policy decision has been taken by the State to allow certain types of industries to function despite the strict lockdown imposed from last week. There is no doubt that due consideration would have gone into choosing which industries to exempt from the lockdown. There is also a presumption that the safety of the workmen at the relevant units would have been taken into account in arriving at the decision. However, at the end of the day, it is a policy decision and unless it is shown that such decision is absurd to the meanest mind, the Court in exercise of the authority under Article 226 of the Constitution may not seek to interfere in such a case,

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7. It is hoped that the industries that have been exempted from the rigours of the lockdown take independent measures to ensure the well-being and safety of the employees required to attend the office or manufacturing units. The Covid protocol has to be maintained at all times. Transportation has to be arranged, not only for the direct employees, but also for the contract labourers and trainees and such others who are expected to attend the office or the manufacturing facilities. Distancing norms have always to be maintained even during the manufacturing operations. It is hoped that necessary steps in such regard are taken by the concerned employers and, in any event, the manufacturing activities restricted to such as may only be necessary to meet the commitments so that there may be less footfall in the offices and the manufacturing facilities”

Copies of the orders dated 17th & 24th May 2021 are attached. The matters will be listed on 31st May 2021.

The second wave of COVID-19 pandemic in India has been more severe and devastating than the first wave, affecting many more human lives and causing significant stress on the healthcare services. In the words of the Hon’ble Prime Minister, it is a storm which has shaken the nation.

Whilst both Central and State Governments are doing their best to tide over the crisis, the challenge is humongous, and all stakeholders have stepped forward to provide every possible support to the affected people. The corporate sector has remained committed to supporting the Government in this fight. It has extended itself in many ways in providing assistance to the society.

Businesses are complementing government endeavours in fighting the pandemic, by providing essential and life survival items such as medical oxygen, oxygen concentrators, ventilators, setting up Covid care centres, free meals, accommodation to frontline workers, etc.

Besides contributing to the society at large, businesses have been actively taking care of their employees across all levels, and their immediate family members, to protect lives and livelihoods. The employer(s) have stepped in to provide financial support to employees to meet COVID-19 care related expenses actually incurred by the employee for self and for his / her immediate family or ex-gratia compensation to family of deceased employee. To the extent support is provided by the employers, the burden on the Government is reduced.

However, the initiative of the employer or other persons, by providing monetary assistance and other support to the employees to meet COVID 19 care related expenses could result in unintended tax burden on the employees and reduce the much needed aid that is required at this critical stage. This is because the current provisions of the Income-tax Act, 1961 have very restrictive exemptions for such assistance.

Given the unprecedented, extraordinary circumstances and genuine hardship faced by the employees and their immediate family members, it is humbly submitted that tax relief may be provided to the individuals by providing an exemption from Income-tax on various forms of COVID 19 support received from employers and other persons. We also take this opportunity to reiterate our representation to allow full deduction for any direct expenditure incurred towards combating COVID 19 crisis, while computing taxable income for the year in which such expenditure is incurred regardless of whether such expenditure is classified as Corporate Social Responsibility (CSR) expense for the purposes of Companies Act 2013.

A detailed note on the taxation difficulties faced by employers and employees and our representations for tax relief is enclosed herewith for your kind consideration.

We trust our concerns and suggestions shall be favourably considered. Your immediate intervention to provide this tax relief will provide much needed impetus to the efforts of the industry to stand by with their employees in this hour of need. The support from the employers will also supplement, in some measure, the Government’s efforts.

The Supreme Court of India, in the case of Lalita Kumari Jain v Union of India, upheld the validity of a notification dated 15.11.2019 issued by the Central Government bringing into force Section 2(e), Section 78 (except with regard to fresh start process), Sections 79, 94-187 (both inclusive); Section 239(2)(g), (h) & (i); Section 239(2)(m) to (zc); Section 239 (2)(zn) to (zs) and Section 249bof the IBC.

The Supreme Court also held that approval of a resolution plan does not ipso facto discharge a personal guarantor (of a corporate debtor) of her or his liabilities under the contract of guarantee.

Copy of the judgment

The Government of Maharashtra has issued an order dated 12th May 2021 extending all restrictions imposed vide orders dated 13th April 2021, 21st April 2021 and 29th April 2021 till 7am of 1st June, 2021. The Government has also issued additional restrictions requiring any person entering in the State by any mode of transport to carry a negative RTPCR Test Report which should have been issued from upto a maximum of 48 hours before the time of his entry in Maharashtra.

Covid Control Measures to deal with Covid 2.0 with Special Emphasis on How to Immunize Large Parts of Population in India

ESIC has issued a Press Release dated 29th April 2021 announcing medical care, sickness benefits, unemployment benefits for insured persons.

Ministry of Health & Family Welfare has issued revisd guidelines in supersession to the guidelines issued on the subject on 2nd July, 2020..As per the guidelines, the patients who are clinically assigned to be mild /asymptomatic are recommended for home isolation.