2026 Supreme(Online)(CAT) 5242

CENTRAL ADMINISTRATIVE TRIBUNAL
1606/2025
O.A./902/2025

Pay anomaly rectification benefits granted to similarly situated employees must be extended to all, not limited to litigants. Notional fixation from 01.01.1996 with actual benefits from anomaly committee implementation date is appropriate.

Headnote:(A) Central Civil Services (Revised Pay) Rules, 1997 - Pay fixation - Anomaly rectification - Notional fixation with effect from 01.01.1996 and actual monetary benefits from 21.04.2004 granted to Inspectors/Superintendents of Central Excise - Principles of equality and fair treatment under Article 14 of the Constitution of India - Once benefit granted to similarly situated employees, same must be extended to all other similarly placed persons. (Paras 32, 34, 38-40)

(B) Limitation - Section 21 of the Administrative Tribunals Act, 1985 - Delay and laches - Pay fixation treated as a recurring cause of action - Where department itself constituted a Special Anomaly Committee pursuant to court orders and implemented its recommendations, claim not barred by limitation - Judicial orders directing uniform application of benefits to all similarly situated employees override technical plea of delay. (Paras 30, 31)

(C) Nature of Judgment - Judgment in rem vs. in personam - Orders passed by courts and tribunals granting pay benefits to a class of employees are judgments in rem and must be applied to all similarly situated employees, not merely to parties before the court. (Paras 32, 33, 35, 37)

Facts of the case:
The applicant, who joined as Inspector in 1982 and retired as Assistant Commissioner of GST & Central Excise on 31.07.2019, sought revised pay scale benefits with effect from 01.01.1996 under the 5th Central Pay Commission. The respondents, while granting upgraded pay scales (Rs.6500-10500 for Inspectors, Rs.7500-12000 for Superintendents) vide Office Memorandum dated 21.04.2004, made them effective only prospectively from that date, not from 01.01.1996. The applicant relied on several judicial pronouncements, including those of the Hyderabad Bench of CAT (upheld by Telangana High Court and Supreme Court) and the Jaipur Bench of CAT (upheld by Rajasthan High Court and Supreme Court), which directed notional fixation from 01.01.1996 and actual benefits from 21.04.2004. Pursuant to directions of the Calcutta High Court in WPCT No. 21 of 2015, a Special Anomaly Committee was constituted which recommended enhanced pay scale notionally w.e.f. 01.01.1996 and actually from 21.04.2004. The respondents opposed the OA on grounds of limitation under Section 21 of the Administrative Tribunals Act, 1985, and on the basis that the applicant was a fence-sitter.

Findings of Court:
The Tribunal found that denial of retrospective application of revised pay scales to the applicant, who is similarly situated to employees of other departments who have already received such benefits, violates principles of equality under Article 14. The Tribunal relied on the settled legal position that all similarly situated persons should be treated similarly, and that judgments granting benefits to a class of employees operate in rem. The respondent department's acceptance and implementation of such orders for other applicants precludes it from treating these decisions as in personam at its discretion. The claim was not barred by limitation as the cause of action continued, especially after the Special Anomaly Committee submitted its report only on 22.09.2023.

Issues: The main issues were whether the applicant is entitled to notional pay fixation from 01.01.1996 with consequential monetary benefits, and whether the claim is barred by limitation under Section 21 of the Administrative Tribunals Act, 1985.

Ratio Decidendi: The court ruled that when an anomaly in pay scales is rectified with effect from 01.01.1996, the consequential benefits must ordinarily flow from that date. Following the precedent set by the Hyderabad Bench (affirmed by Telangana High Court and Supreme Court), the appropriate relief is notional fixation from 01.01.1996 and actual monetary benefits from 21.04.2004. Once a benefit has been granted to a set of employees, the same benefit must be extended to all other similarly placed persons, and judgments in such matters operate in rem. The recommendation of the Special Anomaly Committee, implemented for CBDT employees, must apply equally to CBIC employees as both function under the common Department of Revenue.

Result: The OA was allowed. The respondents were directed to refix the pay of the applicant w.e.f. 01.01.1996 under the CCS (Revised Pay) Rules, 1997, granting notional benefits from that date and actual monetary benefits from 21.04.2004, with all consequential benefits including pensionary benefits, within two months. No order as to costs. (Paras 40, 41)

Table of Content
1. introduction to case and relief sought (Para 1)
2. factual background and service history (Para 2)
3. applicant's arguments and supporting precedents (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
4. respondent's arguments on delay and laches (Para 13 , 14 , 16 , 17 , 18 , 19)
5. court's analysis and judicial reasoning (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)
6. final order and directions (Para 40 , 41)

CENTRAL ADMINISTRATIVE TRIBUNAL CHENNAI BENCH Dated this 18^th day of March, Two Thousand Twenty-Six CORAM:

HON'BLE MR M. SWAMINATHAN, MEMBER (J)

&

HON'BLE MR. M. L. SRIVASTAVA, MEMBER (A)

A. Ramalingam, Son of Annamalai Gounder, No.13, 4^th street, Mettukulam, Katpadi, Vellore 632 059 …Applicant By Advocate : M/s. S. Sankaranarayanan Vs

1. Union of India rep by The Revenue Secretary, Department of Revenue, Government of India, North Block, New Delhi 110 001

2. The Chairman, Central Board of Indirect Taxes & Customs, Ministry of Finance, Department of Revenue, Government of India, New Delhi 110 001

3. The Principal Chief Commissioner of GST & Central Excise TN & Puducherry, 26/1, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034

4. The Commissioner of GST & Central Excise Chennai Outer Commissionerate, Newry Towers No.2054, I & II Avenue, Anna Nagar, Chennai 600 040 …Respondents By Advocate : Mr. J. Vasu

ORAL ORDER

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

This OA has been filed by the applicant seeking the following relief:

(i) To call for the records of the respondents and to declare that the applicant herein is entitled to the benefits of revised pay scale with effect from 01.01.1996 on actual basis, i.e., from the date when the 5th CPV became operational, based on the judgements/decisions of the Hon’ble Supreme Court and various High Courts and Tribunals (ii) To direct the respondents to grant benefits of revised pay and allowances to the applicant from 01.01.1996 till the time of his retirement on actual basis (iii) To grant and pay consequential arrears of pay and allowances for the period from 01.01.1996 to the date of his retirement (iv) To issue revised Pension Payment Order accordingly and to grant and pay the pension arrears and post-retirement benefits along with 18% interest per annum to the applicant as the applicant is a retired government employee of the respondent department (v) To direct the respondent to pay cost of the litigation to the applicant as the applicant has been deliberately dragged to the Tribunal by the respondent and (vi) To issue appropriate directions or orders which this Tribunal deems fit, just and proper in the circumstances of the case to meet the ends of justice”.

2. Brief facts of the case, as submitted by the applicant:

The Applicant joined the department on 07.07.1982 as Inspector and was promoted as Superintendent on 10.04.2001. Subsequently, he was promoted as Assistant Commissioner of GST & Central Excise on 29.10.2014. The Applicant retired on 31.07.2019 after attaining superannuation. During the period from 01.01.1996, the applicant was working as Inspector of Central Excise and was drawing his pay and allowance in the pay scale of Rs.1640-60-2600-75-2900. From 10.04.2001, he was working as Superintendent and was drawing his pay in the pay scale of Rs.200-30-2300-75-3200. On implementation of 5^th pay commission, the pay scale of Inspector of Central Excise was initially fixed in the pay scale of Rs.5500-175-9000 and the pay scale of Superintendent in the pay scale of Rs.6500-200-10500 effective from 01.01.1996. After acceptance of anomaly in the pay scales, the Union Government refixed in the pay scale of Rs.6500-10500 and Rs.7500-12000 respectively vide Ministry of Finance OM F.No.6/37/98-IC, dated 21.04.2004, giving effect prospectively from 21.04.2004, and not w.e.f 01.01.1996 as it should have been. Therefore, the applicant submitted his representation dated 23.06.2023 requesting to consider upgra

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