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2026 Supreme(Online)(CAT) 2314

CENTRAL ADMINISTRATIVE TRIBUNAL
Veena Kothavale, J, Sisir Kumar Ratho, A
K Arumugam – Appellant
Versus
Union of India – Respondent
OA No. 310/00822 of 2024



Advocates:
For the Appellants/Petitioners: Dr. K. Manoharan
For the Respondents: Mr. M. Kishore Kumar, SPC

Group B officers granted Grade Pay Rs.4800 via ACP entitled to non-functional upgradation to Rs.5400 after 4 years service, per judicially affirmed principle overriding departmental denial.

Headnote:(A) CCS (Revised Pay) Rules, 2008 - Non-Functional Upgradation - Group B officers in pre-revised scale of Rs.7500-12000 (corresponding to Grade Pay Rs.4800 in PB-2) granted through Assured Career Progression Scheme entitled to Grade Pay of Rs.5400 in PB-2 on completion of 4 years continuous service therein - Subsequent departmental clarification denying benefit to those granted scale through ACP scheme held contrary to earlier clarification and judicially set aside - Benefit available w.e.f. date of completion of 4 years service, counting from placement in pre-revised scale, even if prior to 01.01.2006 (Paras 3, 4, 14, 15)

(B) Service Law - Parity and Article 14 - Similarly situated employees entitled to identical treatment - Benefit extended pursuant to judgments in similar cases to large number of employees must be extended to others in same department holding same pay scale through ACP, denial thereof discriminatory (Paras 8, 19)

(C) Judicial Discipline - Decisions of High Court affirmed by Supreme Court including dismissal of review petition binding on Tribunal and department - Rule of consistency mandates implementation (Paras 16, 17, 18)

Facts of the case:
Applicants, serving/retired Group B officers (Assistant Commissioners/Superintendents) in Central Excise, GST and Customs, sought non-functional upgradation to Grade Pay Rs.5400 in PB-2 after 4 years in Grade Pay Rs.4800 (pre-revised Rs.7500-12000) granted via ACP - Respondent denied benefit relying on clarification restricting upgradation to regular promotion cases only - Impugned rejection orders challenged.

Findings of Court:
Impugned orders quashed - Applicants entitled to Grade Pay Rs.5400 in PB-2 w.e.f. date of completion of 4 years service in Grade Pay Rs.4800 - Respondents directed to grant benefit with all consequential benefits within 3 months.

Issues: Entitlement to non-functional upgradation for officers granted pre-revised scale Rs.7500-12000 through ACP; validity of departmental clarification denying benefit; applicability of parity principle to similarly situated employees.

Ratio Decidendi: Non-functional upgradation to Grade Pay Rs.5400 permissible after 4 years in GP Rs.4800 (pre-revised Rs.7500-12000) regardless of grant through ACP or promotion - Departmental clarification overridden by judicial pronouncements attaining finality; discrimination in selective implementation violates equality.

Result: OA allowed.

Table of Content
1. applicants seek non-functional grade pay upgrade. (Para 1 , 2)
2. 6th cpc nfu entitlement upheld by madras hc and sc. (Para 3 , 4 , 5)
3. precedent from tribunal and courts mandates equal treatment. (Para 6 , 7 , 8)
4. respondents deny nfu for acp-based gp 4800. (Para 9 , 10 , 11)
5. madras hc judgment binding; sc affirmed. (Para 12 , 13 , 14 , 15 , 17 , 18)
6. applicants granted nfu gp 5400 with benefits. (Para 19 , 20)

O R D E R

(Hon'ble Ms. Veena Kothavale, Member(J)

Applicants have filed this OA seeking the following reliefs:-

"(i) To call for the records of the Respondent and to declare that the applicants are entitled for the benefits of Grade Pay of Rs.5400 in PB-2 on Non-Functional basis after 4 years of service in Grade Pay of Rs.4800 in PB-2;

(ii) To quash/set aside the impugned Orders of the Respondent, namely,

(a) GCCO/CCCA/MISC/117/2022-CFCCA dated 05.03.2024 in respect of Applicant-1 (K. Arumugam);

(b) GCCO/CCCA/MISC/117/2022-CFCCA dated 05.03.2024 in respect of Applicant-2 (S. Sundara Rajan);

(c) GCCO/CCA/MISC/26/2024-CFCCA dated 09.01.2024 in respect of Applicant-3 (D. Antony Balasingam)

(d) GCCO/CCCA/MISC/117/2022-CFCCA dated 05.03.2024 in respect of Applicant-4 (R. Kumar),

(e) GCCO/CCCA/MISC/117/2022-CFCCA dated 06.03.2024 in respect of Applicant-5 (M. Muniasamy),

(f) GCCO/CCA/117/2022-CFCCA dated 05.03.2024 in respect of Applicant-6 (R. Sankar)

(g) GCCO/CCA/MISC/117/2022-CFCCA dated 05.03.2024 in respect of Applicant-7 (K.V. Baskar)

(iii) To direct the Respondent to grant the benefits of Grade Pay of Rs.5400 in PB-2 on Non-Functional basis after 4 years of service in the Grade Pay of Rs.4800 in PB-2 to the applicants at the earliest with all consequential benefits and all the pensionary benefits may be calculated reckoning the deemed last pay as the basis and various pensionary benefits worked out accordingly, along with interest at the rate of 12% p.a. from the due date and also the revised PPO issued after revising the extent of pension; (iv) To issue appropriate directions or orders which this Hon'ble Tribunal deems fit, just and proper in the circumstance of the case to meet the ends of justice and (v) To award costs to the applicants for deliberating dragging the applicants to this Hon'ble Tribunal."

2. Briefly, the facts as set out by the applicants are that they are serving in or retired from various Central Excise, GST and Customs Commissionerates in Tamil Nadu as Assistant Commissioner of Central Excise & GST / Assistant Commissioner of Customs/ Superintendent of GST & Central Excise in the respondent department. They had requested the Respondent vide their representations to consider granting them Grade Pay of Rs. 5400/- in PB-2 with effect from 01.01.2006 on completion of continuous service of 4 years in GP Rs.4800/- in PB-2. They are in the pay scale of Rs.7500-12000 (pre-revised) as per the extant rules. The Respondent did not accede to their request and refused to grant them the Grade Pay of Rs.5400/-. The applicants are aggrieved by the said rejection as they are entitled for the said upgradation as per the instructions of Government of India and CCS (RP) Rules.

3. It is further stated by the applicants that pursuant to the 6th Central Pay Commission Recommendations, the Government of India, vide CCS Revised Pay Rules, 2008, provided for grant of higher Grade Pay of Rs.5,400/- in Pay Band-2 to the Income-Tax Officer, Superintendent, Appraiser, etc.(Customs & Central Excise) in the Department of Revenue on completion of four years of service in the Grade Pay of Rs.4,800/- in Pay Band-2 (pre-revised scale Rs.7,500-12,000). Vide letter dated 21/11/2008, Central Board of Excise & Customs had issued a clarification stating that four-year period is to be counted with effect from the date on which the Officer is placed in the pay scale of Rs.7500-12000 (pre-revised)/ PB 2 GP 4800 (revised). It further stated that if an Officer completes four years of service as on 01.01.2006 or earlier, he would then

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