CENTRAL ADMINISTRATIVE TRIBUNAL

MADRAS BENCH
Wednesday, the Ninth day of March, Two Thousand Eleven
PRESENT

THE HON'BLE MR. K. ELANGO, JUDICIAL MEMBER

AND
THE HON'BLE MR. R. SATAPATHY, ADMINISTRATIVE
MEMBER
ORIGINAL APPLICATION NO.821,930,931 and 1098 OF
201,0

0.A.821 of 2010

S. Ramachandran,
Superintendent of Central Excise(Retd),
C-9, Sri Vidya Apartments,
No.14, Balakrishna Mudali Street,
Chennai. .. Applicant
Vs.
1.Union of India
rep by the Senior Accounts
Officer,
Pay and Accounts Office,
Central Excise,
121, Mahatma Gandhi Road,
Chennai.

2.The Chief Controller of Accounts,

Central Excise,
121, Mahatma Gandhi Road,
Chennai.
3.The Principal Chief Controller
of Accounts,
Central Board of Excise and
Customs, A.G C.R. Building,
I.P. Estate, New Delhi.
5. The Joint Secretary(Admn.),
Central Board of Excise and
Customs, North Block,
-2-
New Delhi.
6. The Secretary,
Deptt. Of Expenditure, North
Block, New Delhi.
7. The Under Secretary(Estt.),
Ministry of Personnel, Public
Grievances & Pensions,
Deptt of Personnel and Training,
North Block, New Delhi.

8.The Chief Commissioner of

Central Excise,
121, M.G. Road, Chennai.
9.The Commissioner of Central
Excise,
Large Tax Payers Unit,
1755, J.N. Inner Ring Road, Anna
Nagar(West Extension), Chennai.
.. Respondents
0 .A .9 30 & 9 31 of 2 0 10

R. Chandrasekaran
Superintendent of Central Excise,
0/0 Commissioner of Central Excise,
Large Tax Payer Unit,
1755, J.N. Inner Ring Road,
Anna Nagar(W), Chennai. .. Applicant in O.A.
930/2010
G. Shanmugam,
Superintendent of Central Excise,
0/o Commissioner of Central Excise,
Large Tax Payer Unit,
1755, J.N. Inner Ring Road,
Anna Nagar(W), Chennai. .. Applicant in O.A.
931/2010

Vs.
1.Union of India
rep by the Secretary, Deptt of
Expenditure, North Block, New Delhi.

7
 -3-
2.The Joint Secretary and
Financial Adviser,
Ministry of Finance,
Department of Revenue,
Central Board of Excise and Customs,
Hudco Vishala Building,
"B" Wing, 4 th to 6 th Floor,
Bhikaji Cama Palace, R.K. Puram,
New Delhi.

3.The Principal Chief Controller of

Accounts,
Central Board of Excise and Customs,
A.G.C.R. Building, I.P. Estate,
New Delhi.

4.The Chief Controller of Accounts,

Central Excise,
121, Mahatma Gandhi Road,
Chennai.

5.Senior Accounts Officer,

Pay and Accounts Officer,
Central excise,
121, Mahatma Gandhi Road,
Chennai.
6.The _Joint Secretary(Admn.),
Central Board of Excise and Customs,
North Block, New Delhi.

7.The Commissioner of Central Excise,

Large Tax Payers Unit,
1755, J.N. Inner Ring Road,
Anna Nagar(West Extension),
Chennai. .. Respondents

0.A.1098 of 2010

S.Jayanth,
Superintendent of Central Excise,
0/o Commissioner of Central Excise,
Large Tax Payer Unit,
1755, 3.N. Inner Ring Road,_
Anna Nagar(W), Chennai. .. Applicant
Vs.
1.Union of India
rep by the Secretary, Deptt.
Of Expenditure, North

,„
 -4-

2.Controller General of Accounts,

Deptt of Expenditure,
7 th Floor, Lok Nayak Bhavan,
Khan Market, New Delhi.
3.The Joint Secretary and
Financial Adviser,
Ministry of Finance,
Deptt. Of Revenue,
Central Board of Excise and Customs,
H u d c o V i s h a l a B u i l d i n g , B - W i n g,
4 th to 6 th Floor,
Bhikaji Cama Palace, R.K. Puram,
New Delhi,
4.The Principal Chief Controller of
Accounts,
Central Board of Excise and Customs,
A.G.C.R. Building,
I.P. Estate, New Delhi.
5.The Chief Controller of Accounts,
Central Excise,
121, Mahatma Gandhi Road,
Chennai.
6.Senior Accounts Officer,
Pay and Accounts Office,
Central Excise,
121, Mahatma Gandhi Road,
Chennai.
7.Joint Secretary,
Deptt. Of Personnel and Training,
North Block, New Delhi.
8.The Joint Secretary(Admn.),
Central Board of Excise and Customs,
North Block, New Delhi.
9.Chief Commissioner of Central Excise,
121, Uthamar Gandhi Salai,
Nungambakkam, Chennai.
10.The Commissioner of Central Excise,
Large Tax Payers Unit,
1755, Jawaharlal Nehur Inner Ring Road,
Anna Nagar(West Extension),
Chennai. .. Respondents
Mr. Akbar Row •. Cousnel for the
applicant in O.A.

R. Chandrasekaran
G. Shanmugam
S. Jayanth
Mr. K.Ravi Anantha Padmanabhart...
 -5-

ORDER
(Pronounced by The Honble Mr. K. Elango, Judicial Member)

The applicants in these applications have joined

the Central Excise Department as Inspector and later on

promoted as Superintendent. As per the ACP Scheme, the

applicants are entitled to second ACP on completion of 24

years of service. Accordingly, they have been fixed salary in

the pre-revised scale of Rs.8000-275-13,500 which is a

Group 'A' scale. Consequent on the implementation of the VI

the Pay Commission's recommendations, their pay was fixed

in the Revised Pay in Pay Band 2 viz., Rs.9300-34800 with

Grade Pay of Rs.5400/- They have made representations

that they should be given the pay scale of Rs.15,600-39,100

in Pay Band 3 with the Grade Pay of Rs.5400. Taking into

account the Central Board of Central Excise and Customs

Circular dated 29.9.2009 and DOP&T's Order dated 9.4.2009

and the promoti on orde r i ssued to the appli cant, the

respondents came to the conclusion that the applicants are

entitled to be paid under Pay Band-3 with Grade Pay of

Rs.5400/- and fixing their pay accordingly, they have sent

the Bill for approval to the Pay and Accounts Office. The Pay

and Accounts Office returned the Bill seeking some

.04

clarification. Not satisfied with the clarification offered by the

competent authority, the Pay and Accounts Office once again

eiterated that the applicants are not entitled to Pay Band 3

with the Grade Pay of Rs.5400/-. Aggrieved by the order

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that they are not entitled to Pay Band, they have come

before this Tribunal for quashing of the said order and for a

direction to the grant the scale of pay in Pay Band 3 i.e.

15,600-39,100 with Grade Pay of Rs.5400/ - The applicants

also claimed interest for the arrears of pay on account of

fixation of pay in the said Pay Band.

2. The respondents have f iled a reply denying the

various contentions made by the applicants in the O.A. and

submitted that the applicants are promotees and the Pay

sca le at tach ed to the Pa y Band 3 with G rade Pa y of

Rs.5400/- will be applicable to direct recruits only and hence

they prayed for dismissal of the application.

3. We have heard Mr. Akbar Row, learned counsel for

t h e a pp l i c an t i n 0 .A . 82 1 of 2 01 0 an d the ap p l i c an t s wh o

have appeared as party-in-person in 0.As 930,931 and 1098

of 2010 and Mr. K. Ravi Anantha Padmanaban, learned

counsel for the respondents in all the 0.As and perused the

pleadings and the materials placed on record.

The question that arises for our consideration is

whether the applicants are entitled to be paid Pay Band- 3

with Grade Pay of Rs.5400 as claimed by them or as

contended by the respondents that they are entitled to have

the Pay Band -2 with Grade Pay of Rs.5400/-.

5. Du ring the he a rin g, le a rn ed coun se l fo r the

respondents produced before us a copy of letter No.A -

23011/29/2010-Ad.II-A dated 25.2.2011 from the Ministry of

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Finance, Department of Revenue addressed to the Chief

Commissioner of Central Excise wherein the advice of the DOPT with

regard to the issue raised in these applications has been clarified. The

same is reproduced as hereunder:

"It may be clarified that, prior to introduction of MACPS, the benefits of

the 1 s t and 2 nd financial upgradations udner the ACPS of August, 1999
had been granted in the promotional hierarchy w.e.f. 09.08.1999 or on
completion of 12 and 24 years of regular service. The benefits of
ACPS of August, 1999 had been allowed till 31.08.2008. However, as per the
recommendations of the 6 th CPC, three financial upgradations have been
allowed under MACPS w.e.f.01.09.2008 or on completion of 10,20
and 30 years of continuous regular service, whichever is later, in
the immediate next higher grade pay in the hierarchy of
recommended revised pay b a n d s a n d g r a d e p a y a s p r e s c r i b e d i n
t h e CC S ( R P ) Rules,2008 provided that the Government official has
not earned three promotions during the period.
The pay structure on the recommendations of the 6 t h CPC has been
made effective w.e.f 01.01.2006 vide Department of Expenditure's
Notification dated 29.8.2008. The benefits of financial up gradation
in the promotional hierarchy under the ACPS have, however, been
allowed in the revised pay s t r u c t u r e d u ri n g t h e p e r i o d be t w e e n
0 1 . 0 1 .2 0 06 a nd 31.08.2008 in terms of clarification given on point of
doubt no.3 of Annexure of DOPT's O.M. dated 09.09.2010.

As per the recommendations of 6 th CPC, Superintendents in Department

of Revenue with 4 years of regular service in that grade are eligible
fo Non-functional Grade in the grade pay of Rs.5400 in PB-2 in the
corresponding pay band w.e.f. 01.01.2006.

The benefits of ACPS of August, 1999 have been allowed till 31/08/2008
and only functional promotion(s) is/are counted for the purpose of
Scheme. Besides, there is no provision for counting of 'Non-functional
scale' for the purpose of ACPS.
In view of the above facts and circumstances, there would be no effect
on grant of 'Non-functional scale' in the PB_2 with grade pay of
Rs.5400 during the period between 01.01.2006 to 31.08.2008,as the
same is not counted under ACPS and it would not be offset against
financial up gradation under the Scheme. However, in terms of para
8.1 of Annexure of MACPS, financial up gradation granted in the
grade pay of Rs.5400 in PB-2 and PB-3 would be counted separate
 -8-

Learned counsel for the respondents further submitted that

in view of the above said advise of the DOPT,the applicants

are entitled for fixation of pay in Pay Band 3 with the Grade

Pay of Rs.5400/- as claimed by them and prayed that the

applications may be disposed of accordingly.

6. Taking into consideration the said statement of the

learned cousnel for the respondents, the applications are

ordered by giving the following directions

1. The impugned orders in the
re s p e c t iv e 0As denying the Pay
s c a l e i n P a y B a n d 3 with Grade Pay of
Rs.5400/- are quashed.
2. As the applicants are entitled
t o h a v e the pay sca le in Pay Band -3
i.e . Rs.15600 - 3 9 1 0 0 w i t h G r a d e P a y
R s . 5 4 0 0 / - t h e i r p a y may be fixed
accordingly and
3. As the applicant in 0.A.821 of
2 0 1 0 h a s taken voluntary retirement, he may
be p a i d t h e r e t i r e m e n t b e n e f i t s o n t h e
basis of t h e f i x a t i o n o f p a y i n P a y
B a n d - 3 w i t h Grade Pay of Rs.5400/-.
5. Direction given in clause 2 and 3
shall be complied with within a
period of two months from the date
o f r e c e i p t o f a c o p y of this order.

In the circumstances, there is no order as to costs.