Notional service can be counted for financial benefits under the MACPS, reinforcing applicants' claims for grade allowances.

ORDER

Delivered by Hon’ble Mr. Justice Rajiv Joshi, Member (J)

Heard Shri Jaswant Singh, learned counsel for the applicant and Shri Chakrapani Vatsyayan, learned counsel for the respondents.

2. The instant Original Application filed by the applicant for the following main relief(s):-

“(i) That this Hon’ble Tribunal be pleased to quash and set aside the impugned order dated 09.04.2024 (Annexure No.A-1 to Compilation No.I).

(ii) That this Hon'ble Tribunal be pleased to hold and declare that the Applicants herein have also liable for similar relief as already granted by this Hon'ble Tribunal in OA No. 691/2023 to the similarly placed Inspector of CGST Lucknow Zone, Lucknow by pronouncing the order on 17-05-2024 by quashing and set aside the impugned clarification/letters/order dated 07-02-2018, 14-07- 2021, 26-02-2018, 29-07-2021, 27-03-2019 & 22-04-2019 issued by the Respondents wherein it was clarified that the benefit of notional service would not be allowed for grant of MACP/NFG. And,

(iii) That this Hon'ble Tribunal be pleased to hold and declare that the action of the Respondents in not granting the Non Functional Grade Pay of 5400 (PB-2) to applicants on completion of 4 years of regular service in Grade Pay of Rs.4800 as illegal and unjustified. And,

(iv) That this Hon'ble Tribunal be pleased to hold and declare that the Applicants are also eligible for grant of Non Functional Upgradation (NFG) of Rs. 5400/- in PB-2 w.e.f. the date when they have completed 4 years regular service in grade pay of Rs.4800/-.”

3. The brief facts of the case, as stated by the applicants, are as under:-

3.1 The applicants are serving as Inspectors under the Central Board of Indirect Taxes and Customs (CBIC) and were notionally promoted to the grade of Inspector w.e.f. 01.07.2001 and 06.12.2002 pursuant to a Review Departmental Promotion Committee (DPC) held on 15.06.2011. This was in compliance with the judgment dated 02.03.2005 passed by the Andhra Pradesh High Court in WP No. 7963/2004, which was accepted and implemented by the Ministry of Finance with a stipulation that the promotions would be subject to the final outcome of Civil Appeals No. 1970-1975/2009 before the Hon’ble Supreme Court. Their pay was accordingly fixed in the pay scale of Rs. 5500-175-9000 (pre-revised), revised to Rs. 6500-200-10500, in accordance with FR 22(1)(a)(i).

3.2 The Apex Court, while disposing of Civil Appeals No. 1970- 1975/2009 on 05.02.2020, though not affirming the decision of the High Court, protected the promotion of the applicants by invoking the principle laid down in Taherakhatoon (D) by Lrs. v. Salambin Mohammad, as mentioned in para 120(22) of the judgment. This protection ensured the legitimacy of the applicants’ promotions.

3.3 Meanwhile, the 6th Central Pay Commission introduced the Modified Assured Career Progression Scheme (MACPS) effective from 01.09.2008, replacing the earlier ACP scheme, providing for three financial upgradations after 10, 20, and 30 years of continuous regular service.

3.4 In accordance with para 1 of Annexure-I to the MACP Scheme OM dated 19.05.2009, which stipulates that financial upgradation shall be granted after 10 years of continuous service in the same Grade Pay, the applicants became eligible for financial upgradation in the Grade Pay of Rs.4800/- upon completing 10 years from their notional promotion dates (i.e., from 01.07.2001 or 06.12.