Settled promotions granted over a decade ago against pre-existing vacancies under old recruitment rules cannot be disturbed by declaring them non-existent post cadre restructuring, as it amounts to impermissible constructive reversion.

ORDER

Hon’ble Ms. Harvinder Kaur Oberoi, Member (J):

1.In both these OAs, the subject matter is the validity/legality of the impugned circular dated 12.06.2025 issued by the Central Board of Excise & Customs (hereinafter referred to as “CBEC”), Department of Revenue, Ministry of Finance. As the issue is same and hence, with the consent of the learned counsel for the parties, both the OAs have been heard together and are decided together by this common order. However, for writing the present order, the facts are being taken from OA No. 2356/2026 (Deepak Kumar Shrivastav) treating the same as the lead case.

2. The brief facts of the case are that the Applicants are serving as Inspectors under Respondent No. 3. Their promotions to the post of Inspector were granted with effect from 06.12.2002, based on DPCs held in 2007, 2011 and 2012, under the 1979 Recruitment Rules (Old RRs) against vacancies that had arisen prior to 07.12.2002. It is submitted that the Applicants were promoted against 382 vacancies in the cadre of Inspectors, created due to the promotion of 382 Inspectors to the post of Superintendent prior to 07.12.2002. These vacancies, being pre-existing, were required to be filled under the Old RRs from eligible feeder cadres.

3. Learned counsel for the applicants submits that pursuant to cadre restructuring of 19.07.2011, new Recruitment Rules for Inspectors were notified on 07.12.2002, expanding the feeder cadre. However, the vacancies that arose prior to the coming into force of the new RRs continued to be governed by the Old RRs. It is submitted that it is categorically clarified that 382 vacancies did not lapse or stand abolished. It directed Respondent No. 3 to: treat the 382 posts as existing vacancies as on 06.12.2002, and to fill all vacancies existing before 07.12.2002 under the Old RRs. The clarification was issued to ensure proper implementation of the order of the Hon’ble Andhra Pradesh High Court dated 02.03.2005 in W.P. No. 7963/2004.

4. Learned counsel for the applicants submits that upon examination of the dates of vacancy occurrence and date of new RRs coming into force, the Respondents acted on the Board’s 2007 clarification and duly filled the 382 vacancies under the Old RRs, resulting in the promotion of the Applicants w.e.f. 06.12.2002. These promotions were made subject to the outcome of an SLP pending before the Hon’ble Supreme Court in D. Raghu & Others.

5. It is submitted by the learned counsel for the applicants that for the first time on 24.10.2016, Respondents 1 & 2 issued a communication claiming that the 382 posts “had been upgraded” during restructuring and therefore were “non-existent,” and directed that DPCs be reviewed—effectively undoing the Applicants’ long- settled promotions. This communication was directly contradictory to the Board’s own interpretation in the letter dated 29.05.2007.

6. Learned counsel for the applicants submits that the aforesaid communication dated 24.10.2016 was challenged in OA No. 1652/2018 and OA No. 3996/2018 and this Tribunal, by judgment dated 28.08.2024, quashed the same and directed the constitution of a Task Force to draft comprehensive guidelines addressing issues arising out of the series of litigations and the judgment in D. Raghu.

7. Learned counsel for the applican