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2026 Supreme(Online)(CAT) 3533

CENTRAL ADMINISTRATIVE TRIBUNAL
M. Swaminathan, Judicial Member, M.L. Srivastava, Administrative Member
R.Mahadevan – Appellant
Versus
Union of India – Respondent
OA/310/01006/2025|OA 811/2025



Advocates:
For the Appellants/Petitioners: M/s Menon, Karthik, Mukundan & Neelakantan
For the Respondents: Mr. Su. Srinivasan, SCGSC Mr. Rajnish Pathiyil

Pay parity judgments for Inspectors/Superintendents are in rem, entitling all similarly situated officers to notional fixation w.e.f. 01.01.1996 despite non-litigation; selective implementation violates Article 14 (38 words).

Headnote:(A) Administrative Tribunals Act, 1985 - Section 21 - Central Civil Services (Revised Pay) Rules, 1997 - Pay revision for Inspectors and Superintendents of Central Tax and Customs - Officers holding posts of Inspectors (pay scale Rs.1640-2900) and Superintendents (Rs.2000-3200) as on 01.01.1996 entitled to upgraded scales Rs.6500-10500 and Rs.7500-12000 notionally w.e.f. 01.01.1996 (date of 5th CPC implementation) with actual monetary benefits from 21.04.2004 (date of OM), following recommendations of Special Anomaly Committee constituted pursuant to High Court directions - Denial of notional fixation violative of Article 14 - Benefits extended as judgments in rem applicable to all similarly situated non-litigants, not restricted to parties (in personam) - Fence-sitters entitled on parity, delay not bar as recurring cause of action in pay matters - Impugned communication restricting benefits to specific litigants set aside - Notional fixation mandatory for ACP/MACP/pensionary benefits. (Paras 10, 12, 17, 42, 50)

(B) Article 14 of Constitution of India - Equality - Model employer bound to uniformly implement judicially recognized pay parity across class of employees - Selective implementation post judicial precedents arbitrary; Special Anomaly Committee recommendations binding on entire department under common administrative control - No separate committee needed for analogous cadres. (Paras 16, 24, 44)

(C) Limitation - Section 21 AT Act - Pay fixation/recurring monthly emoluments constitute continuing wrong; fresh cause arises from departmental circulars implementing benefits selectively - No condonation needed; stale claims revived by parity enforcement. (Paras 40, 41)

Facts of the case:
Serving and retired Inspectors/Superintendents in Central Tax/Customs Department sought notional pay upgradation w.e.f. 01.01.1996 per 21.04.2004 OM, challenging 16.06.2025 circular restricting benefits to specific court litigants despite identical entitlement under 5th CPC parity with other departments (CBI/IB). Tribunal rejected maintainability objection, applying precedents including Supreme Court affirmations.

Findings of Court:
Impugned circular set aside; respondents directed to refix pay notionally w.e.f. 01.01.1996, grant actual benefits w.e.f. 21.04.2004 with arrears/consequentials (ACP/MACP/pension) within 2 months.

Issues: (1) Maintainability vis-à-vis non-communication of circular and delay; (2) In personam vs. in rem nature of parity judgments; (3) Entitlement to notional fixation from 01.01.1996 for non-litigants; (4) Validity of selective implementation post Anomaly Committee.

Ratio Decidendi: Judicial declarations on common service conditions bind entire class (in rem); parity mandate under Article 14 precludes discrimination against fence-sitters; pay anomalies rectified retrospectively per accepted committee recommendations applicable department-wide.

Result: OAs allowed.

Table of Content
1. case details and parties listed (Para 1 , 2)
2. pay scale parity dispute history (Para 3 , 11 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
3. respondents challenge maintainability (Para 4 , 5 , 6 , 7 , 8 , 9)
4. tribunal upholds jurisdiction (Para 10 , 12)
5. judicial precedents on notional pay (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38)
6. pay fixation recurring cause (Para 39 , 40 , 41)
7. judgments in rem for parity (Para 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49)
8. notional pay from 1996 ordered (Para 50 , 51)

ORDER

(Pronounced by Hon'ble Mr. M. Swaminathan, Judicial Member)

As identical relief is sought in both applications and they arise from similar facts and circumstances, they were heard together and are being disposed of by this common order.

2. The relief prayed for in the OA 1006 of 2025 reads as follows:

“To set aside the order in F.No.A023011/44/2024- Ad.II A dated 16.06.2025 of the 2nd respondent in so far it restricts the benefits flowing from the decisions rendered by various courts tabulated therein with regard to the entitlement of Inspectors of Central Excise/Superintendents of Central Excise/Superintendents of Central Excise as a class for the higher pay of Rs.6500-10500/-Rs.7500- 12000/- respectively, notionally w.e.f. 1.1.1996, only to the parties to such decisions and not to all identically situated officers who held the post of Inspector of Central Excise/Superintendents of Central Excise as o 1.1.1996 and consequently direct the respondents to extend similar benefits flowing from such decisions being judgment in rem to the applicant who are identically situated by granting them the revised pay scale of Rs.6500-10500/Rs.7500-12000/- as the case may be, w.e.f. 1.1.1996 or from the date of appointment as Inspectors of Central Excise/Superintendent of Central Excise whichever is earlier along with all consequential benefits which includes and not limited to revised ACP/MACP benefits from the due date including arrears of revised, pension and retiral benefits wherever applicable and pass such further or other orders as may be deemed fit and proper.”

3. For the sake of brevity, the facts are being extracted from the OA No1006 of 2025, as hereunder:

The applicants, comprising serving and retired officers of the Central Tax and Customs Department (formerly known as the Department of Customs and Central Excise), were holding the posts of Inspectors of Central Excise and Superintendents of Central Excise as on 01.01.1996. At the relevant time, they were drawing pay in the scales of Rs.1640–2900 and Rs.2000– 3200 respectively under the recommendations of the 4th Central Pay Commission (CPC). Historically, parity in pay scales existed between Inspectors of Central Excise and Inspectors in the Central Bureau of Investigation (CBI) and Intelligence Bureau (IB), owing to the comparable nature and responsibilities of their duties. However, following the implementation of the 4th CPC, Inspectors in the CBI and IB were unilaterally granted the higher pay scale of Rs.2000–3200 with effect from 01.01.1986, while no corresponding revision was extended to Inspectors of Central Excise. Subsequently, the 5th CPC recommended the replacement pay scale of Rs.5500–9000 for both categories. Nevertheless, the Government selectively granted the benefit of higher upgradation only to Inspectors of the CBI and IB. This discriminatory treatment resulted in widespread representations and agitation by Central Excise Inspectors. Consequently, a High Power Committee was constituted in 1998, which recommended restoration of parity. Pursuant thereto, the Ministry of Finance issued an Office Memorandum dated 21.05.2004 revising the pay scales of Inspectors and Superintendents of Central Excise and Customs, as well as certain other comparable posts, to Rs.6500–10500 and Rs.7500– 12000 respectively. However, the said revision was implemented only prospectively. The prospective implementation of t

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