Monday, March 4, 2019

Grade Pay of 6600 after 20 years to ACP Inspectors- Representation

Friends, the following is my representation for GP 6600 as 2nd MACP in PB3 after 20 years. Please go through and make suggestions if any otherwise I am going to submit the same shortly. Interested people can follow this. We will further proceed with legal course after reasonable time.

To                                                                                   Date:  5th Mar’2019
The Principal Commissioner,
CGST and Central Tax & Cadre Controlling Authority,
Hyderabad Zone,
(Through Proper Channel)

Respected Sir,

Subject:- Grant of 2nd MACP on completion of 20 years regular
               service w.e.f. 03.05.2013 in the Grade Pay of 6600 in PB3
               and disbursement of Arrears of pay - request –Reg.

1.           I joined as direct recruit Inspector in Department on 03.05.1993. I was granted benefit of First ACP (Assured Career Progression) w.e.f. 03.05.2005  as I had already completed the requisite length of 12 years of regular service in the entry grade of Inspector of Central Excise and Customs and thus, I was placed in the pay scale of Rs. 7500-250-12000 (of Superintendent). I stood placed in the grade of Superintendent of Central Excise w.e.f. 03.05.2005.

2.           I was promoted to the grade of Superintendent vide your office Establishment Order (GO) No. 22/2011   dated 9.5.2011 and joined the said post of Superintendent on promotion on 13.5.2011. No benefit of pay fixation was extended to me on promotion.

3.           I was granted 2nd MACP in PB-2 with Grade Pay of Rs. 5400/ w.e.f. 03.05.2013 vide your office Establishment Order (NGO)No. 123/2015 dated 03.09.2015 after completion of 20 years of regular service.

4.           I was granted NFG of 5400 in PB2 w.e.f. 03.05.2009 retrospectively when I  have completed four years of regular service in the grade pay of 4800(pre-revised 7500-250-12000) in compliance of CAT Hyderabad OA No 1051/2010. After granting the NFU 5400 GP in PB2 on 03.05.2009, I was supposed to be granted  2nd MACP on completion of 20 years of regular service as on 03.05.2013 in  grade pay 6600 in PB3 as the grade pay of 5400 granted to me in PB2 and the grade pay of 5400 in PB3 are one and the same. Presently my pay is fixed in Level 9 of the Pay Matrix as per Seventh Pay Commission with basic pay of Rs. 80200/- w.e.f. 01.07.2018.

5.           In the backdrop of the above facts relating to my service, your good self is requested to sympathetically consider the under-mentioned judgments which have become Law of the Land in recent times.

a)    In the matter of Hari Ram & Anr. Vs. Registrar General in WP (C) No.9357/2016 the Hon’ble High Court of Delhi has decided the question whether the Petitioners have been rightly denied the benefit of 3rd MACP after they were given the benefit of NFG on completion of 4 years period in their existing post. The Petitioners claimed that the Grant of Rs 5400/- Grade Pay is an financial up gradation in the form of Non Functional Grade which is an integral part of their pay scale, to preclude their claim for the grant of third financial upgradation. In this context, Hon’ble Bench has observed that unlike “stagnation” or performance based increments, or placement in higher scales, the grant of Rs. 5400/- is automatic, after happening of a certain event, i.e. completion of 4 years’ service. Thereafter, the Hon’ble Bench had held in their Judgement pronounced on 20.12.2017 that the grant of a higher grade pay did not preclude the grant of the third financial up gradation. The petition had succeeded. The above said judgement has evidently achieved its finality as no further appeal has been preferred by the Respondents of the WP ( C ) No. 9357/2016. Evidently it has, therefore, become the Law of the Land that the benefit of 2nd or 3rd MACP shall not be offset against the NFG of 5400 grade pay granted under VI th Pay Commission.

b)   In S. Balakrishnan case in W.P. No.11535 of 2014 the Hon’ble Madras High Court in their Order dated 16.10.2014 has held that “ Financial upgradation given to respondents 1 to 3 in the subject case was revised solely on the ground that Grade Pay of Rs. 5400 in PB-2 and Rs. 5400 in PB-3 shall be treated as separate Grade Pays for the purpose of financial upgradation under MACPs. Such a view was taken by taking a literal interpretation of Clause 8(1) of MACPs without taking into account the purpose for which the very scheme was evolved.” The Hon.ble Bench has further observed that “the petitioners proceeded as if Grade Pay of Rs. 5400 in PB-3 is higher Grade pay to the Grade pay of Rs. 5400 in PB-2” and thus held that “the immediate next higher Grade of Pay to the Grade Pay of Rs. 5400 is Rs. 6600/-.” The said Order dated 16.10.2014 of Hon’ble Madras High Court has also become the Law of the Land in as much as SLP No. 15396/2015 filed by Union of India against the said Order dated 16.10.2014 has already been dismissed on Merit by Hon’ble Supreme Court by their Order dated 31.08.2015. Resultantly, it cannot be contended by the Government that the Grade Pay of Rs. 5400/- in PB-2 and Rs. 5400/- in PB-3 shall be treated as separate Grade Pays for the purpose of upgradation under MACPs.

c)    As per MACP rules macp is to be granted only to next immediate higher grade pay but not to next immediate grade pay. Whether it is in PB2 or PB3 after 5400 grade pay next higher grade pay is only 6600 grade pay. As per para 2 of MACP Scheme, the MACPS envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1 , Part-A of the first schedule of the CCS (Revised Pay) Rules, 2008. Thus the scheme recommends immediate next higher grade pay and de-linked the grade pay of promotional post. It means there is no connection between MACP and next promotional grade. Therefore, whatever the immediate next higher grade pay available has to be given on MACP irrespective of whether it is immediate promotional grade or otherwise.

d)   As per para 5 of MACP scheme ‘promotions earned/ up gradations granted under ACP scheme in the past to those grades which now carry the same grade pay due to merger of pay scales/ up gradations of posts recommended by the sixth pay commission shall be ignored for the purpose of granting up gradations under Modified ACPs. Therefore, the upgradation granted in grade pay of 5400 to officers after 4 years in 4800 grade pay, as recommended by VI pay commission should be ignored for the purpose of granting MACP. Further, the para 8.1 clarifies only that the grade pay 5400 in pb2 & in pb3 will be treated as different grade pays but it cannot be treated as  higher grade pay.

e)    There are large number of other judgements of Hon’ble Central Administrative Tribunal (various Benches) and Hon’ble High Courts on the subject matter which are in consonance with the above discussed Laws of Land but for the sake of brevity, the same have not been referred herein intentionally.

f)     On examination of the above discussed Laws of the Land, it emerges that :-

(i)     NFG in Grade Pay of Rs. 5400/- in PB-3  is admissible  w.e.f. 01.01.2006 to the officers who have completed their 4 years’ regular service in the pay scales corresponding to the Grade Pay of Rs. 4800/- in PB-2 because the officers by virtue of their length of service have invariably reached to their basic pay in the span of running Pay Band-3 (Rs. 15600 to Rs. 39100) by the time they get NFG and as per  the Law of the Land evolved in the case of S.Balakrishnan and Ors in W.P.No.11535 of 2014 dated 16.10.2014 of Madras High Court, it has been stipulated that there is no separate Grade Pays of Rs. 5400/- in PB-2 and PB-3. The Hon’ble  Court was of the view that Clause 8(1) of the Office Memorandum should be treated as a corollary to Clause 8. According to the Tribunal, Clause 8(1) would be applicable only to those Departments, which provide for promotion to the post carrying the same Grade Pay.
(ii)    Benefits of 2nd MACP cannot be denied to the officers who had completed 20 years of service on that date i.e. after 01.01.2006 and who had also been granted NFG of 5400 in PB2. Accordingly, such officers are entitled to the benefits of 2nd MACP in the Grade Pay of Rs. 6600/- w.e.f. the date of completion of 20 years, as it has become the Law of the Land that the immediate next higher Grade Pay to the Grade Pay of Rs. 5400/- is Rs. 6600/- and benefit of MACP cannot be denied on the pretext that upgradation in the form of NFG has already been given to the officers.

g)    It is very humbly requested that considering the above legal provisions which have reached their respective finality, I may please be given the benefits of MACP in the under-mentioned manner.

i)     My pay may please be fixed in PB-3 with Grade Pay of Rs. 5400/- w.e.f. 03.05.2009 as the benefit of NFG.

ii)   My pay may please be further fixed in PB-3 with Grade Pay of Rs. 6600/- w.e.f. 03.05.2013 as the benefit of 2nd MACP.

Thanking You,

Yours sincerely,


Copy submitted to,
The Principal Commissioner,
Audit-II Commissionerate,


Tuesday, October 10, 2017


 News from Delhi...

The Subramanian case on GP 5400 came up before the Hon'ble SC today. We engaged Dr. Counsel Shri. Venkataramani, Sr. Adv.. Briefed the Counsels and handed over SC decision on the same case sent by Com. P.Vigneswara Raju. The Sr. Counsel submitted the same. The Bench dismissed the SLP of the dept.  Details later.

Sunday, April 23, 2017

Govt to unveil Rs 5,000-Crore Pension plan, 5 mn Central Employees to benefit

Govt to unveil Rs 5,000-Crore Pension plan, 5 mn Central Employees to benefit
The Union cabinet is set to approve next week a new Rs 5,000-crore pension formula that is expected to benefit more than five million central government employees.
Official sources said the new formula will calculate pension based on the latest drawn salary for a particular post.
“If a person retired as a director under the sixth pay commission, ten years later his pension would be fixed (based on) the salary of a director in the seventh pay commission,” explained a senior government official.
“The new pension scheme will be put up to cabinet for approval next week.”
The new method was fixed by an empowered committee of secretaries (Ecos) headed by secretary (pensions).
The seventh pay commission recommended that pension could be calculated by two methods: One, pension would be 50% of the last salary and multiplied by 2.57. The second was an incremental method where pension was fixed at the last salary drawn with adjustments of increments drawn in that particular pay band.
The incremental method was found to have lacunae as 20% of records were found to be missing in various government departments, and officials felt this could lead to litigation in future.
“To avoid legal hurdles, the Ecos came up with the pay fixation method,” explained the senior official

Friday, February 10, 2017



Minutes of JAC Meeting held with Hon'ble FM on February 10, 2017

President, IRS (C&CE) Association greeted the FM and thanked him for granting time to the Joint Action Committee of all CBEC Associations. The President lauded the efforts put in by government in bringing this landmark legislation of GST aimed at One Nation One Tax. The President also conveyed the commitment of all CBEC officers in making this change a great success. The officers will put in all the efforts for a smooth transition. It was stressed and made clear that the officers are not against GST and not going on any demonstrations etc. the way state officers are doing.

The President  apprised the FM that such a major transition requires a motivated workforce which is lacking in the CBEC Officers due to certain decisions of GST Council. The President made it clear to the FM that officers are not hungry for power but the decisions made in GST Council are against the spirit of ease of doing business and not in the Centre's interest. It was also told how the reduced assessee base will effect the Service as well as the UOI. Parity issue   was also taken.
Thereafter, the President gave the JAC submission to Hon'ble FM which was carefully read fully by the FM.
Also, the President handed over the summary of Regional Chapters representations to FM which were also read completely by the FM.
 FM gave a patient hearing to the associations  and thereafter assured that he is now fully aware of the concerns and would discuss the same with RS & Chairman CBEC and will get our concerns redressed.

FM was of the viewpoint that there are two issues:..

·    ...    Shrinking of new hirings

·  ..      Boasting the morale of existing workforce and providing them ample career opportunities and proper utilisation of present work force.

The FM was of the opinion that post GST there will be increase in work of Income Tax Department  due to more and more assesses coming under tax net. This increase in work of Income Tax Department can be absorbed or transferred to CBEC. FM was aware that work done by CBEC and CBDT is quite similar in nature as both departments do assessment, scrutiny, audit etc. The surplus workforce of CBEC can be a boon to joint working by both departments.
The FM also said that merger of CBDT and CBEC can be explored but was also wary of a possible resistance from CBDT.

Further,  President informed the FM about major HR issues being faced by all service members and the solution can be achieved internally within the department. FM was very positive for finding the solution.

President also raised the  concerns of the service problems of Group B,C,D associations aldo and lack of promotion avenues . He  noted them to take on priority.

The meeting concluded o  a positive note with Vote of Thanks to FM for giving patient hearing and assurance to redress our concerns.

We hope for the best for all.

IRS ( C&CE) Association