ORDER

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

1.The applicants were appointed as Tax Assistants under Directorate General of Performance Management (DGPM), under Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance during the years 2015–2016 on the basis of recommendations made by Staff Selection Commission. After their appointment, the respondents finalized and notified the seniority list of Tax Assistants working in DGPM, New Delhi in the year 2017. At the time of joining, the promotional avenues of the applicants to the higher post of Senior Tax Assistant/Executive Assistant and thereafter to Inspector, Central Excise and Customs were governed by the Recruitment Rules notified on 14.07.2004 by the then Directorate of Inspection (Customs & Central Excise), which was subsequently renamed as DGPM. Under the said Recruitment Rules, a Tax Assistant possessing three years of regular service in the grade and having qualified the prescribed departmental examination was eligible for promotion to the post of Senior Tax Assistant in the pay scale of Rs. 5000–8000 (revised to PB-2 Rs. 9300–34800 with Grade Pay Rs. 4200).

2. The applicants submit that suddenly, vide order dated 12.02.2018, all Group ‘B’ and Group ‘C’ cadres, including Executive, Ministerial and Non-Technical cadres of different Directorates under CBEC/CBIC, were merged into one common cadre. Consequent to the merger, the seniority lists maintained separately by various cadre controlling authorities were also merged into a common seniority list, which materially affected the applicants and similarly situated employees. Thereafter, the respondents were required to convene a Departmental Promotion Committee for promotion to the post of Senior Tax Assistant against the available vacancies in accordance with the Recruitment Rules then in force and the DOP&T Office Memorandum dated 20.04.1998 prescribing the schedule for holding DPCs.

3. The applicants completed the requisite three years of service between 2018 and 2019 and thereby became eligible for promotion to the post of Senior Tax Assistant under the Recruitment Rules of 2004. However, despite availability of vacancies, the respondents failed to convene timely DPCs and did not consider the applicants for promotion under the prevailing statutory Recruitment Rules. Instead, when promotions were eventually made vide orders dated 27.08.2019, 01.01.2020 and 03.12.2020, the respondents applied the Recruitment Rules dated 28.09.2015 meant for Field Offices/Commissionerates, wherein the eligibility condition for promotion from Tax Assistant to Senior Tax Assistant had been enhanced from three years to ten years. The applicants submit that the said Recruitment Rules of 2015 were never applicable to employees serving in DGPM and other Directorates merged under the order dated 12.02.2018.

4. The applicants further submit that each Directorate under CBEC had separate Recruitment Rules, but the eligibility criteria for promotion from Tax Assistant to Senior Tax Assistant in the Directorate cadre continued to remain three years. Therefore, the respondents could not legally apply the Recruitment Rules framed for Field Offices to employees serving in DGPM. Aggrieved by the said arbitrary action, the applicants submitted representations from January 2021 onwards contending that promotions in DGPM ought to have been governed by the Recruitment Rules dated 14.07.2004 and not by the Recruitment Rules applicable to Field Offices.

5. The applicants contend that after realizing the illegality committed in applying the wrong Recruitment Rules, the respondents instead of conducting a review DPC sought to legitimize their action by notifying fresh Recruitment Rules on 31.10.2022. Even in the said amended Recruitment Rules, the respondents failed to incorporate the mandatory saving clause contemplated under Clause 3.1.3 of the DOP&T Office Memorandum relating to framing and amendment of Recruitment Rules, which