This Original Application having been heard on 12.08.2026, the Tribunal on 02.09.2026 delivered the following:

O R D E R

Per: Justice Sunil Thomas, Judicial Member

– The sole applicant who has retired as a Deputy Commissioner, Central Tax & Central Excise, aggrieved by the retrospective refixation of pay with effect from 1.1.2006 by which pay was reduced to a lower level by Annexures A1 and A2 orders dated 9.3.2020 and 11.3.2020 respectively and the consequential recovery of Rs. 1,19,871/- from his retirement benefits has approached this Tribunal.

2. The applicant joined as an Inspector under the respondents on 20.6.1984. He was promoted as a Superintendent in PB-2 with Grade Pay of Rs. 4,800/-. After four years he was granted Grade Pay of Rs. 5,400/- in PB-2 with effect from 1.1.2006. Later he was granted the 2nd ACP in PB-3 with Grade Pay of Rs. 5,400/- with effect from 20.6.2008. He was promoted as an Assistant Commissioner on 22.10.2014 in the same pay scale. Just prior to his retirement on 30.5.2020, he was issued with Annexure A3 dated 14.5.2020, the revised pay fixation statement by which his pay was reduced in supersession of pay fixation order dated 4.12.2012.

3. According to the applicant, he came to know from Annexures A1 and A2, copies which he had obtained, though not served on him officially that while scrutinizing the service book of the applicant before his retirement, 7th respondent noticed the increment granted to the applicant as per the Department of Expenditure OM dated 19.3.2012. They sought a clarification from the 6th respondent and 5th respondent issued Annexure A1 clarifying that since non-functional upgradation was granted to the applicant with effect from 1.1.2006 in PB-2 with Grade Pay of Rs. 5,400/-, the previous scale of pay in PB-2 with Grade Pay of Rs. 4,800/- became inoperative as on 1.1.2006 for grant of annual increment as per DoE OM dated 19.3.2012. Based on Annexure A1 clarification from the 6th respondent the 7th respondent by Annexure A2 directed the 5th respondent to fix the pay with effect from 1.1.2006. Following that, Annexure A3 revised pay fixation statement was issued to the 4th respondent. Essentially, the increment of 1.1.2006 was proposed to be withdrawn.

4. Immediately after service of Annexure A3, applicant retired from service, and a sum of Rs. 1,19,871/- was recovered from his retirement benefits, evidenced by Annexure A4 due and drawn statement.

5. According to the applicant, his annual increment fell due on the 1st of June every year. When a uniform date of annual increment was introduced by CCS (RP) Rules, 2008, it was prescribed that employees completing six months and above in the revised pay structure as on 1.1.2006, would be eligible to be granted an increment. The revised pay was fixed with effect from 1.1.2006. Hence, the first increment after fixation of pay on 1.1.2006 in the revised pay structure was granted on 1.7.2006, for those employees to whom the date of next increment fell between 1.7.2006 to 1.1.2007. Since there was no mention about employees whose annual increments fell due between February, 2006 to June, 2006, the President in exercise of powers conferred under the CCS (RP) Rules, 2008 directed to fix increment that fell due between February, 2006 to June, 2006 on 1.1.2006 in pre-revised scale as a one-time measure and thereafter, the next increment in the revised pay structure on 1.7.2006. Annexure A5 is the said communication. In the light of Annexure A5 the annual increment of the applicant was fixed notionally on 1.1.2006 in the pre-revised scale, so that he could draw next increment after completion of six months on 1.7.2006. Now this was sought to be withdrawn by stating that the previous pay scale of PB-2 with Grade Pay of Rs. 4,800/- became inoperative as on 1.1.2006.

6. According to the applicant, he came across Annexure A6 clarification issued by the Department of Expenditure in an identical matte