The issue was ESI applicability on conveyance. The ESI claimed contribution on conveyance. Further to that, ESIC court set aside the claim of ESI on insurance.

Aggrieved by the order, ESI approached high court. However, the said appeal has been dismissed by the judgement in the special leave petition by Supreme Court of India, Civil Appellant Jurisdiction. It has been clearly said that conveyance allowance is in the nature of travelling allowance and is given by the employer for free transport of the employee. Hence, the conveyance given to employee, either for travelling from home to place of work or otherwise cannot be treated as wages.
Hence, conveyance is now excluded from the purview of ESI payment. No ESI contributions on conveyance.

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