" IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE ARE ALSO MEMBERS OF AIACEGEO. THIS IS THE ONLY ASSOCIATION FOR SUPERINTENDENTS OF CENTRAL EXCISE AND IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE THROUGH OUT THE COUNTRY . President Mr.T.Dass and SG Mr. Harpal Singh.

Monday, 8 June 2026

Inputs for Cadre Restructuring

 

ALL INDIA ASSOCIATION OF CENTRAL TAX

GAZETTED EXECUTIVE OFFICERS

(Earlier known as All India Association of Central Excise Gazetted Executive Officers)

President:                                             Address for communication:                                      Secretary General:

Kajal Kumar Mandal                         Flat No. 6, SE 11, Shastri Nagar, Ghaziabad                           Harpal Singh

Mob. 9957366172      mail Id:aiacegeo2019@gmail.com        Site: cengoindia.blogspot.in       Mob. 9717510598

Chief Patron: Ravi Malik Patrons: A. Venkatesh, C. S. Sharma, M. Nagaraju

Vice Presidents: B C Khatik, K D Venkatraman  (Central) Swapan Kr Das, Subrata Adhikary (East) Ashish Vajpayi, B B Sharma (North) G Srinivas Reddy, G Ananda Sukumar (South) Siddhraj Parmar, Vimal Kishore Soni (West) Joint Secretaries: Manoj Kumar, T J Manojumon (Central) Pradyut Purkayastha, Ashis Maji (East) Rajeev Prakash, Anil Sreedharan (West) Prabhakar Sharma, R B Sahu (North) K Yugandhar Kumar, S M Kosalaya Devi (South); Office Secretary: B C Gupta Treasurer: Manoj Kumar Liaison Secretary: Bhoopesh Organising Secretary: Utkarsh Sharma West Zone Coordinator: R Keny Legal Coordinator: S Sabarwal Joint Organising Secretary: Jayant Dey East Zone Coordinator: Debasish Modak

(Recognised vide F.No.B-12017/17/2022-AD-IV A dt. 14.07.23 of CBIC, Govt. of India)

Ref. No. 37/AIB/C/26                                                                       Dt. 08.06.26

To,

The DG, HRD, HRM-I,

CBIC, New Delhi.

Sub: Suggestions/Inputs for Cadre Restructuring exercise in CBIC.

Madam,

            Kindly refer to the mail dated 27.05.26 received from your good office.

            2. It is to submit with due regards that the most of the Central Excise/CGST Superintendents entering the job as Inspector are retiring only with single promotion in the service career of 35 to 40 years and forced to work under their extreme juniors of Customs belonging to the same cadre recruited through the same examination in the same organisation of CBIC under the same department of Revenue of the same Ministry of Finance. The single cadre of Inspector in the CBIC has been trifurcated into 3 sub-categories in absolutely unjustifiable manner, i.e., Inspector (Central Excise/CGST & Land Customs), Preventive Officer (Inspector Customs) & Examiner (Inspector Customs) to be promoted as Superintendent (Central Excise/CGST & Land Customs), Superintendent (Customs) & Appraiser (Customs) respectively merging at group ‘A’ entry level. This places the officers entering the job as Inspector (Central Excise/CGST & Land Customs) decades behind the Examiners (also admitted by the CBIC in its Board meetings of 12.01.11 and 18.02.11) due to the discriminatory rate of promotion and faulty recruitment rules. This results into their promotions upto the level of Commissioner (6 promotions) whereas our officers retire as Superintendent only (1 promotion) except those who are promoted to the temporary post of Asstt. Commissioner with the clause of no further promotion and to be discontinued/abolished any time. The last cadre restructuring was also proved of no good to remove the acute stagnation of the totally demoralized officers of ours (Central Excise/CGST Superintendents and Inspectors) on account of which the Cabinet also approved to bring some measures to remove the stagnation of our officers independent of cadre restructuring but very unfortunately, the said measures are still awaited even after expiry of 13 years of its approval by the Cabinet.

3. The CBIC as on date has thousands of Group ‘B’ officers already putting more than 25 years of service and got only one promotion. ACPS/MACPS is also unable to undo the gross injustice done to our officers. Moreover, our officers are getting in 30 years (duly admitted by our CBIC but nothing done) under MACP Scheme what they were getting in 24 years under ACP Scheme. Even the temporary posts of the Asstt. Commissioner created in the last cadre restructuring did no good to our officers on account of being created with the clause of “no further promotion” and also not being included in the recruitment rules. Our officers didn’t get the benefit of even a single paisa on being promoted against these posts at the fag end on account of already working in the same pay scale. Many of them rather forced to get less emoluments on account of being transferred to the cities with less HRA. Due to this reason, a good number of our officers prefer to forgo the promotion against these posts and many are forced  to  plan to be voluntarily retired. Thus, the last cadre restructuring was insufficient to remove the acute stagnation of the totally demoralized officers of ours as also admitted in advance by the CBIC in the Board meeting of 12.01.11. That’s why the Cabinet was also pleased to recommend bringing of some measures independent of cadre restructuring to remove stagnation of our officers but nothing done till date. The measures are required to be brought immediately giving effect from the date of approval by the Cabinet. These measures may be in the form of functional promotions, in-situ promotions, Flexible Complementary Promotion Scheme (FCS) already prevalent in the Department of Science & Technology, Dynamic Assured Career Progression Scheme (DACP) already prevalent in the Ministry of Health, Non-Functional Financial Upgradation (NFU) already implemented in the case of Group ‘A’, Notional promotions, use of supernumerary posts etc. etc. to bring parity between Central Excise/CGST and Customs personnels.

4. Our common entry counterparts in CSS, CBDT, Customs, Rajya Sabha Secretariat etc. are already being promoted upto Level-14 (5 to 6 promotions) whereas the most of our officers retire at the post of Level-8 only with single promotion after being appointed as Inspector, whether direct entry or by promotion. This gross injustice has totally demoralised the Central Excise/CGST Superintendents leaving nothing to be motivated. This injustice is needed to be undone at the earliest in the interest of the Govt. revenue.

5. Regarding GST, no need to say that we require essential manpower and infrastructure particularly at Group ‘A’ entry to Addl. Commissioner level and also to strengthen the set-ups like audit, preventive, anti-evasion, anti-smuggling, anti-narcotics, seaports, ICDs, airports, SEZs, LCSs, 24*7 working etc. alongwith major expansion of the existing formations to increase more & more the indirect tax collection alongwith to stop smuggling activities, infiltration of contrabands & lethal weapons also to stop serious threat to the security of the Nation. The Standing Committee on Finance in its 52nd report had also expressed its concern over the pathetic situation of man-power shortage desiring CBIC to give interim relief to the stagnating cadres.

6. No need to say that no revenue related work is assigned to the Commissioner & above levels under GST. So, the posts of the Commissioner may be minimized on the pattern of the State GST where only one Commissioner is looking after the work of SGST in whole State. Thus, there should be only one Commissioner in whole State under Central GST too, rather the Commissioner looking after the work of State GST may also look after the work of CGST also on account of Central GST & State GST both being governed by one & same GST Council. So, all posts above the Addl. Commissioner may be abolished for matching-saving to create more posts at lower levels.

7. While submitting its 52nd report on 20.04.2012, the standing committee on finance observed that in CBEC (now CBIC) the majority of Direct recruit Inspectors of Central Excise and Preventive officers (both almost 98%) get only one functional promotion during average service span of 35 years. Main reason for such acute stagnation is the ratio (1:15) between the strength of Assistant Commissioner (Group A) level and Group B gazetted level of these officers. In other departments of GOI the said ratio varies from 1:2 to 1:4. The Committee expresses their concern over the pathetic situation of man power shortage and desires both CBDT and CBEC to hasten formulation of a policy in this regard while giving interim relief to stagnating cadres. The Committee also observed that the shortage of staff is the main reason for shortfalls in the performance of both the Departments.

8. The Public Accounts Committee in its 79th Report on the topic "Service tax on Banking and other Financial Services" submitted to both Lok Sabha and Rajya Sabha on 21.03.13 at Para XVI of Part-B to Part-I has discussed in details about the staff position in Service Tax under CBEC. At Para 18 of Part-II, the PAC has observed, "The Committee notes that there is a lack of perspective planning in the matter of deployment of staff on such a vital source of revenue collection viz., Service Tax. Taking into consideration the amount of revenue collected from Service Tax and Central Excise during the year 2011-12, the Committee is surprised to find that in contrast to the deployment of nearly 40,000 officers for excise, only 4000 to 5000 officers have been deployed for Service Tax stream and that too after withdrawing from the Central Excise stream. Apparently, Service Tax wing has been working for more than 15 years with no staff of its own. The Committee is dismayed to note the helplessness expressed both by the Finance Secretary and Chairman, Central Board of Excise & Customs in this regard especially when Ministry of Finance is itself one of the nodal authorities for examining and sanctioning requisite staff to Ministries. The Committee feels that the staff requirement be examined on priority basis by the concerned authorities in order to ensure that the Service Tax collections, which have increased phenomenally from Rs. 407 crore in 1994-95 to Rs. 97,389 crore in 2011-12 does not suffer for want of human resource.” Thus, the report justified sufficiently high increase of the officers on functional basis against the then existing sanctioned strength of merely 2000 in Service Tax. The observations of the Committee are now equally applicable to GST and thus, the CBIC will have to do a lot to improve its Human Resource Policy.

9. The IRS officers of CBIC get parity with the common entry counterparts of CBDT in every cadre restructuring including the last one and also with other better placed common entry group ‘A’ counterparts including IAS alongwith the creation of posts in the higher pay scales even without having eligible officers in Group ‘A’ for further promotions and later seeking relaxation for their promotions. They have also been granted financial parity with the best placed counterparts of IAS in the form of NFU. Such good things should also happen to our officers being appointed as Inspector and the most of them retiring on the post of Superintendent merely after single promotion in the career. Unfortunately, no parity (not even financial) with common entry counterparts like CBDT, CSS, Customs etc. has ever been considered for Central Excise/CGST Superintendents and Inspectors. The talks of parity for our officers with other counterparts were, however, made during the presentation of the last cadre restructuring proposal on 18.01.11 but nothing has been done till date even despite of the specific recommendations of the Cabinet to bring independent measures to remove the stagnation of our officers.

10. This parity is basic concept of our Constitution and very much required to boost the morale of the officers by adopting the measures like time bound promotions/scales, notional promotions, upgradation (functional or non-functional), creation of supernumerary posts, direct promotion to higher post/s, upgradation of posts, creation of separate service, in-situ promotions or any other specific measure/s alongwith re-framing of the RR’s without trifurcating the cadre at group ‘B’ non-gazetted/group ‘B’ gazetted level prescribing the qualifying service as per DOPT OM No. AB-14017/61/2008-Estt.(RR) dt. 24.03.09 (not being followed by CBIC) which stipulates clearly the promotion of Inspector grade to the grade of Joint Commissioner, Addl. Commissioner & Commissioner after completion of 12, 17 & 20 years of service respectively. During the presentation of last cadre restructuring proposal on 18.01.11, CBIC showed its inability to implement the said OM due to the want of required number of vacancies/posts. It is, therefore, requested that the required number of posts may kindly be created and the said OM be implemented or our officers may kindly be granted in-situ promotions (which requires no creation of posts) after completion of the due service even independent of cadre restructuring. A little deviation from the above mentioned DOPT guidelines, already framed with the due diligence & application of mind by the DOPT, may be understood but the non-implementation of the same at all is never understandable. If the grant of the prescribed grade is not possible within 20 years, we may be granted the same after completion of 21, 22, 23, 24, 25, 26, 27, 28, 29 or even 30 years (after completion of 1½ times of qualifying service as prescribed by the DOPT based on the precedent of CSS of promoting all the Section Officers to the STS post of Under Secretary after completion of 1½ times of qualifying service in 1999). In-situ promotion scheme may even be in the form of Flexible Complementary/Dynamic Assured Career Progression Scheme, already existing in the Department of Science & Technology and also in the Ministry of Health to remove the stagnation of their employees. No need to say that there exist provisions of in-situ promotions upto the level of Joint/Addl. Secretary in CSS.

11. It is also worth to mention that the upgradation of the Superintendents, completing 20 years of service after joining as Inspector, to the post of Asstt. Commissioner will also require no expenditure as they are already getting the salaries of the said post and upgradtion to the post of Deputy Commissioner after completion of 24 years of service will also require minimal expenditure. Such upgradations will also remove the regional disparities. This upgradation may be even in the form of in-situ promotions, if required numbers of functional posts are not available. The officers with 29 and 32 years of service may further be upgraded to the posts of Joint Commissioner and Addl. Commissioner respectively on functional or in-situ basis. As an instant measure, the in-situ promotion scheme approved in CBIC Board meeting of 18.02.11 may be implemented immediately from the date of its approval independent of cadre restructuring.

12. In the last cadre restructuring, no heed was paid to the DOPT communications issued vide D.O.No.5/26/2010-CS.II(A) Dt. 06.10.10, No. 19/1/2008-CS.I(P) Dt. 20.07.10, No. 20/51/2009-CS.II Dt. 27.01.11, No.35034/9/2010-Estt.(D) Dt. 10.02.11, OM No. 35034/9/2010-Estt. (D) Dt. 10.02.11 etc. stipulating very clearly that the cadre restructuring should be viewed to mitigate the stagnation of the stagnated employees. No need to say that the Central Excise/CGST Superintendents and Inspectors are not only the most stagnated category of the employees under the CBIC but they are also the most stagnated category of govt. employees. The CBIC already has around 40000 group ‘B’ Central Excise executive officers comprising Superintendents and Inspectors retiring with only one promotion in their service career.

13. The officers joining as Inspector of Central Excise/CGST at the most enter group ‘A’ temporary post of Asstt. Commissioner whereas the Examiners belonging to same cadre are becoming Commissioner against regular post in CBIC which is a very good thing and we have no objection to it but our request is that such very good thing should also happen to us. No such measures like Examiners have been taken for the officers joining as Central Excise/CGST Inspector to mitigate their acute stagnation who are forced to work under their extreme junior Examiners. It is also worth to submit that the Income Tax Inspectors as well as the Assistants of CSS and Rajya Sabha Secretariat are easily becoming the Commissioner and Joint Secretary. The reason behind these disparities seems the existing ratio between group ‘A’ entry level to group ‘B’ gazetted to be 1:20 in CBIC whereas it is 1:2 in CBDT or even less at other places. Nothing has also been done despite of the specific directions of the Principal Bench of Hon’ble CAT in OA No. 2323/2012 to grant parity in promotions with the intra-organisational counterparts to our Inspectors and Superintendents to save them from the humiliation of working under the juniors belonging to the same cadre. If implemented, no need to say that this would also result into the removal of the regional disparities in promotions. Instead, the CBIC gave a misleading affidavit in the CAT. Such parity will certainly have a positive impact on the government revenues due to the feeling of job satisfaction amongst our officers.

14. Fixing of a ratio of 13:2:1 for entry into Group ‘A’ is also no way just & fair and is also contrary to the Para 2.2.2 of DOPT OM No. 20011/1/2008-Estt(D) dt. 11.11.10 mandating fixation of no ratio in the case of small number of promotional posts as around only 2% promotional posts are available for us which is too small (As far as the temporary posts of Asstt. Commissioner are concerned, the same are not included in the RRs and also no further promotion is available on being promoted against these posts). The CBIC has itself admitted in the Board meeting of 18.02.11 that the said ratio is insufficient to address the situation of the stagnation of our officers. Thus, the promotion to the Group ‘A’ from Group ‘B’ should be made on the basis of the length of service as Group ‘B’ officer by doing away with the ratio system as was being done in the past.

15. It is also submit-worthy that the most of the group ‘B’ gazetted officers including CSS are being promoted to the senior time scale group ‘A’ posts in Central as well as State governments including State GST while the Central Excise/CGST Superintendents are allowed to be promoted (if any) merely to a junior group ‘A’ post. CBIC has done nothing in this regard even in r/o the verdict given by the Principal Bench of Hon’ble CAT in OA No. 684/2018. Thus, this issue requires immediate redressal.

16. The CBIC is already short of working hands at each level. The Finance Secretary once observed that Central officers are far behind the State officers under GST. The observations made by the Finance Secretary are required to be analysed in r/o manpower, workload per individual and infrastructure available to our officers in comparison to the State officers to take due corrective measures under the cadre restructuring or even independent of it. Sh. B. B. Agarwal, the then Chief Commissioner of Hyderabad Zone, made the interesting study on this issue already submitted by him to the CBIC. No need to say that the submissions made by Sh. B. B. Agarwal are required to be taken seriously in the cadre restructuring and Central GST should be given functional parity with the State GST for even better results from the angle of the Govt. revenue. It is worth to reiterate that Central GST and State GST both are governed by the one and same GST Council with the provisions of cross empowerment.

17. As on date, CBIC is having more than 10000 assesses per Range as average. However, many Ranges are having even upto lacs assesses which is really a terrible and unworkable situation putting unwarranted burden and tension on our Superintendents who are already overburdened for the want of the due helping hands and being always busy in preparing various reports leaving no time for scrutiny, assessment, show cause notices, adjudication orders etc. and any other important work. So, we need to have not more than 500 assessees (as per original GST proposal, it was 250-300 assessees) per Range alongwith required helping hands, if we expect smooth Range working. Likely, there should be not more than 2500 assesses per Division alongwith sufficient manpower for smooth working. No need to say that we need equal number or more manpower particularly at Group ‘A’ entry level for Headquarters offices as well as sufficiently high manpower for Customs formations. We will require additional manpower at each level for Anti-evasion/Preventive, Audit, anti-smuggling, anti-narcotics, seaports, ICDs, airports, SEZs, LCSs etc. work for smooth tax administration. The Association requests that due care may kindly be taken in the cadre restructuring for the same alongwith Customs work to create the sufficient posts at Group ‘A’ entry level alongwith providing sufficient manpower at Superintendent, Inspector and lower levels. The posts may also be created at higher levels as per requirement keeping in strict view that these should not be less than one third of the relevant feeder level as per govt. guidelines. These guidelines may also be taken care for creating the posts at Group ‘A’ entry level meant for the promotion of Group ‘B’ gazetted officers. It is also worth to mention that the Range level offices in the States having around 2000 assessees are manned by 14 to 20 officers including executive, ministerial and executive staff. Thus, our Range should also be manned by 5 executive officers at least alongwith other supporting staff. Very interestingly, the Range level offices in the States have also been provided 2 to 3 vehicles (four wheelers) per office. Accordingly, our Range office should also be provided at least with one vehicle (four wheeler).

    18. The State governments have already upgraded the posts by one rank for their officers. But no such measures have been taken for our officers despite of the repeated requests of the Association. Even the pay scale of the Superintendent level officers is equivalent to the Level-10 for the State GST officers since beginning even before redesignation/upgradation. Thus, the CTOs (the counterparts of our Superintendents in State GST) have already been re-designated/upgradaed as Asstt. Commissioner and also were already placed in a pay scale equivalent to Level-10 even before re-designation/upgradation.The posts above the CTOs have further been upgraded in the States as Deputy Commissioner, Joint Commissioner, Addl. Commissioner and so on. This has put our officers under a very awkward, demoralizing and embarrassing position particularly in dealing with the trade who treat our officers junior to the State GST officers despite of being of equivalent rank from the angle of GST working which results into weak indirect tax administration in Centre in comparison to the States. Not only it, we are also far behind the State officers in the matter of infrastructure. So, the upgradation/redesignation of posts, enhancement of pay scales and providing of due infrastructure are the instant works to be done in CBIC even before going for the cadre restructuring. No need to reiterate that the same measures are required to be taken by CBIC for our officers to avoid them facing the insulting and awkward situation in comparison to the State officers in the interest of an equally strong tax administration at Centre.

              19. As far as the question of the responsibilities is concerned, the most burdened categories of officers under the CGST are our Superintendents and Asstt. Commissioners. Under the cadre restructuring, all grades of the officers are required to be conferred with the responsibilities in proportion of their ranks based on monetary limits like State GST and CBDT.

              20. The Section Officers of CSS, the counterparts of our Superintendents, were granted the time scale of Level-10 after completion of four years of service under their cadre restructuring only in 2003 retrospectively w.e.f. 01.01.96 without recommendation of Pay Commission. Unfortunately, this time scale is available to our Superintendents merely in Level-9. During the ensuing cadre restructuring, our Superintendents should also be granted the benefit of the time scale of Level-10 with the retrospective effect w.e.f. 01.01.96 like Section Officers without offsetting with the MACP upgradation.

              21. Like time scale, our officers joining as Inspectors should also be granted Non-functional Financial Upgradation (also requiring no creation of posts) at par with the best placed counterpart like CSS, CBDT, Customs etc. at least to provide them the financial parity with the said counterparts. This can be done even independent of the cadre restructuring or as the part of the cadre restructuring, being an issue which has already been recommended at least on four occasions for our officers. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this position can be reviewed after one year of the implementation of the cadre restructuring. Meanwhile reference is being made to DOPT. But nothing done after that.

              22. Not only it, the report of the Stagnation Committee headed by Sh. Balesh Kumar may also be implemented before taking the further steps/action regarding the ensuing cadre restructuring.

              23. A separate service for the officers joining the CBIC as Inspector at Level-7 may also be created on the lines of CSS during the ensuing cadre restructuring taking into account the temporary posts of Asstt. Commissioner (adding due additional posts at Group ‘A’ entry level) and sufficient posts at each level at least upto the grade of Commissioner in proportion of the strength of CSS. Keeping in view the above-mentioned verdict of the Hon’ble CAT in OA No. 684/2018 and also considering that the posts of the Asstt. Commissioner and Deputy Commissioner are functionally same; our Superintendents must also be promoted directly to STS post of Deputy Commissioner like the most of their counterparts by converting the above said posts of Asstt. Commissioner to Deputy Commissioner under the separate service. Likewise, it may also be considered that the posts of the Joint Commissioner and Addl. Commissioner are functionally same. So, after direct promotion to the post of Deputy Commissioner, next promotion of our officers should be as Addl. Commissioner in this separate service. Regarding separate service, it is also worth to submit that a good number of posts of the Joint Secretary have been kept reserved for CSS officers in their cadre restructuring. The creation of the separate service for our officers without merging with IRS is also essential to avoid the dilution of the stature of IRS, for which our CBIC always seems to be the most worried. The separate service for our officers was also recommended by CBIC vide F.No.A.26017/147 /06-Ad.II.A Dt. 04.01.07 as one of the measures. The draft RR’s for separate service had already been submitted to the CBIC by the Association. The separate service for group ‘B’ officers has also been recommended on various occasions by the CBIC and also by the IRS Officers Association. It was also the part of the original proposal by the CBIC upto the level of Commissioner which was reduced later even after final approval only upto the level of Deputy Commissioner due to the reason known only to the CBIC. It is also requested that the service may not kindly be diluted by making recruitment of Inspector below Level-7.

              24. For the due representation, transparency and involvement of the Association, it is also necessary to be at least one member from the Association in the cadre restructuring committee to finalise the things.

              25. The existence of such Directorates, which are revenue futile, may also be reviewed. Only the Directorates, which are revenue fertile, should continue. The manpower engaged in revenue futile Directorates may kindly be diverted to the field formations to cope up the acute shortage of manpower in Central GST formations and such Directorates should be winded up.  

              26. In addition to the consideration of the above submissions/points, the following points may also be given due consideration during or prior to cadre restructuring-

              (i) Creation of Flexible Complementary/Dynamic Assured Career Progression Scheme (FCS or DACP) for our officers to grant them at least 5 in-situ promotions which is also an already recommended issue vide F.No. A-26017/154/2015-Ad.IIA Dt. 22.02.16 of CBEC and already existing in the Department of Science & Technology as well as Department of Health.

              (ii) Merger of Level-9 and 10 which is also an already recommended issue vide F.No. A-26017/154/2015-Ad.IIA Dt. 22.02.16 of CBEC. Hon’ble Madras High Court in Writ Petition no. 11535/2014 with M.P No. 1/2014 decided on 16.10.14 has already upheld that the Grade Pay of Rs. 5400/- in PB-2 (Level-9)& PB-3 (Level-10) is one and the same level. The said judgment was finalized by the Hon’ble Apex Court in Special Leave to Appeal (C) 15396 OF 2015.

              (iii) Merger of group ‘B’ Executive non-gazetted as well as gazetted categories as cadres in the Directorates under CBIC have already been merged.

              (iv) Merger of various Cadre Control Authorities under field formations to remove regional disparities.

              (v) Fulfillment of the commitments made during the presentation made on last cadre restructuring proposal on 18.01.11, which couldn’t be covered during that cadre restructuring. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this issue would be taken up after implementation of cadre restructuring but nothing has been done.

              (vi) Seniority benefit on promotion to group ‘A’ in lieu of the service rendered in group ‘B’. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this issue would be taken up after implementation of cadre restructuring but nothing has been done.

              (vii) Promoting all Superintendents completing 1.5 times of qualifying service on the lines of CSS. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this issue would be taken up after implementation of cadre restructuring but nothing has been done.

              (viii) Regularisation of ad-hoc promotions based on the rules existing on the date of regularisation. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this issue would be taken up after implementation of cadre restructuring but nothing has been done.

              (ix) Conversion of temporary posts of Asstt. Commissioner to regular/permanent keeping the same intact for promotee officers forever and deletion of the clause that the officers promoted against these posts would not be entitled for further promotion. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this issue would be taken up only after one year of implementation of cadre restructuring but nothing has been done.  

              (x) Creation of reserve pool posts, which couldn’t be created in the last cadre restructuring. As per the minutes of the meeting held on 04.03.14 issued vide letter F. No. 8/B/49/HRD(HRM)/2014 Dt. 26.03.14 and dispatched vide No. 1272 to 1275 Dt. 26.03.14, it was said that this position can be reviewed after one year of the implementation of the cadre restructuring but nothing has been done.

              (xi) Time scale after every 7 years to the officers after joining the job as Inspector. It was also recommended by CBIC vide F.No.A.26017/147 /06-Ad.II.A Dt. 04.01.07 as one of the measures for our officers. No posts will be required to be created for the grant of time scale after every 7 years.

              (xii) Notional promotions granting batch to batch parity to our officers with the best placed common entry counterparts like Customs/CBDT/CSS etc. There already exist so many legal verdicts in the favour of various employees of many other organizations on notional promotions.

              (xiii) Creation of supernumerary posts which will be personal to the officer at each level of the promotion and will be abolished with the retirement of the officer. There already exist so many legal verdicts in the favour of various employees of many other organizations on supernumerary posts too. The Hon’ble Supreme Court was also pleased to direct the CBIC to adopt this measure in I. C. Joshi case.

              (xiv) Direct promotion to higher post/s: Customs Ministerial officers were promoted as Appraiser without working even for a single day on the feeder post of Examiner. Likewise, our officers may also kindly be promoted directly to the higher posts at par with common entry counterparts.

              (xv) In-situ promotions (requiring no creation of posts) on completion of residency periods as prescribed by DOPT under OM No. AB.14017/61/2008-Estt. (RR) Dt. 24.03.09 after joining as Inspector.

              (xvi) Non-functional financial upgradation on completion of residency periods as prescribed by DOPT under OM No. AB.14017/61/2008-Estt. (RR) Dt. 24.03.09 after joining as Inspector. No need to say that the same have been prescribed by DOPT with due diligence and application of mind.

              (xvii) Counting of service rendered on temporary post of Asstt. Commissioner for further promotions.

              (xviii) To promote our officers joining as Inspector to the post of Asstt. Commissioner or Deputy Commissioner within the specified period of 4 or 7 years respectively as prescribed by the DOPT.

              (xix) Merger of the sanctioned strength of Assistant Commissioner and Deputy Commissioner into one as already done in the case of Joint Commissioner and Additional Commissioner, both categories being functionally same.

              (xx) Earmarking of share of promotee officers upto the level of Commissioner.

              (xxi) Filling-up of all posts of Asstt. Commissioner first by Central Excise Superintendents till they are placed at par with the Customs in the matter of entry into group ‘A’.

              (xxii) Removal of regional disparities in promotions.

              (xxiii) Bringing measures independent of cadre restructuring to remove the stagnation of our officers as approved by the Cabinet at the time of approval of last cadre restructuring. It is to be done prior to the ensuing cadre restructuring with effect from the date of approval by the Cabinet.

              (xxiv) Immediate implementation of in-situ promotion scheme as approved in Board meeting of 18.02.11 with effect from date of its approval.

              (xxv) Immediate implementation of the verdict given by the Principal Bench of the Hon’ble CAT in OA No. 2323/2012 prior to the ensuing cadre restructuring to grant parity in promotions to the Central Excise/CGST Superintendents and Inspectors at par with the intra-organisational counterparts.

              (xxvi) The promotion of the Central Excise/CGST Superintendent directly to STS post (Deputy Commissioner) instead of JTS post (Asstt. Commissioner) like other most of the Group ‘B’ gazetted counterparts of Central as well as State Governments.

              (xxvii) Upgradation of posts, enhancement of pay scales and providing of due infrastructure under GST like State Governments.

              (xxviii) Conferring of the responsibilities to different levels in the administrative hierarchy in proportion of the rank prescribing monetary limits.

              (xxix) Time scale of Level-10 after four years of service to our Superintendents with retrospective effect from 01.01.98 like Sos of CSS without offsetting with the MACP upgradation.

              (xxx) Non-functional Financial Upgradation (also requiring no creation of posts) to our officers joining the job as Inspector at par with the best placed counterpart like CSS, CBDT, Customs etc.

              (xxxi) Creation of separate service upto the level at least of Commissioner for our officers.

              (xxxii) Inclusion of at least one member from the Association in the cadre restructuring committee to take final decisions.

              27. In view of the above and the Central Excise/CGST Superintendents being the most stagnated group ‘B’ gazetted category of the govt. employees, it is requested that the cadre restructuring may kindly be finalised taking due care of the career prospects of the officers joining the job as Central Excise/CGST Inspector and also bring an immediate device independent of cadre restructuring for the acutely stagnated Central Excise Superintendents to retire them at Level-14 & above granting them parity with their common entry counterparts. This will not only enhance the promotional avenues for these officers but will also increase the overall efficiency of indirect tax administration in the interest of the revenue collection due to job satisfaction.

              28. It is also requested that-

              (i) All of the earlier submissions made by the Association since very beginning may kindly be given due consideration alongwith the current submissions.

              (ii) The cadre restructuring proposal may also kindly be provided to the Association before finalization as well as after finalization for relevant comments.

              (iii)  Meeting may also kindly be held with the Association enabling to make due submissions in person.

              29. The Association also seek liberty to make due additional submissions based on the deliberations to be made by the associated units & delegates in Associate Executive Committee meeting of the Association being held on 27.06.26.

              Thanking you,          

Yours sincerely,

                                                                                                                                                        

(HARPAL SINGH),

Secretary General.

Copy with the request for necessary action to:

(1) The Member (P&A), CBIC, New Delhi.

(2) The Chairman, CBIC, New Delhi.

(3) The Secretary, Department of Revenue, New Delhi.

(4) The Secretary, DOPT, New Delhi.

(5) The Cabinet Secretary, Govt. of India, New Delhi.

Wednesday, 3 June 2026

MACP upgradation

 

ALL INDIA ASSOCIATION OF CENTRAL TAX

GAZETTED EXECUTIVE OFFICERS

(Earlier known as All India Association of Central Excise Gazetted Executive Officers)

President:                                             Address for communication:                                      Secretary General:

Kajal Kumar Mandal                         Flat No. 6, SE 11, Shastri Nagar, Ghaziabad                           Harpal Singh

Mob. 9957366172      mail Id:aiacegeo2019@gmail.com        Site: cengoindia.blogspot.in       Mob. 9717510598

Chief Patron: Ravi Malik Patrons: A. Venkatesh, C. S. Sharma, M. Nagaraju

Vice Presidents: B C Khatik, K D Venkatraman  (Central) Swapan Kr Das, Subrata Adhikary (East) Ashish Vajpayi, B B Sharma (North) G Srinivas Reddy, G Ananda Sukumar (South) Siddhraj Parmar, Vimal Kishore Soni (West) Joint Secretaries: Manoj Kumar, T J Manojumon (Central) Pradyut Purkayastha, Ashis Maji (East) Rajeev Prakash, Anil Sreedharan (West) Prabhakar Sharma, R B Sahu (North) K Yugandhar Kumar, S M Kosalaya Devi (South); Office Secretary: B C Gupta Treasurer: Manoj Kumar Liaison Secretary: Bhoopesh Organising Secretary: Utkarsh Sharma West Zone Coordinator: R Keny Legal Coordinator: S Sabarwal Joint Organising Secretary: Jayant Dey East Zone Coordinator: Debasish Modak

(Recognised vide F.No.B-12017/17/2022-AD-IV A dt. 14.07.23 of CBIC, Govt. of India)

Ref. No. 35/AIB/M/26                                                                                  Dt. 03.06.26

To,

(1) The Secretary, DOPT, New Delhi.

(2) The Secretary, Department of Expenditure, New Delhi.              

(3) The Secretary, Department of Revenue, New Delhi.                                                                  

(4) The Chairman, CBIC, New Delhi.

Sub: MACP upgradation.

Dear Sirs,

            Kindly refer to the various representations submitted by this Association since very beginning on the subject matter.

2. It is brought to your kind notice with due regards that our officers were getting GP of Rs. 5400 in PB3 after completion of 24 years under ACP Scheme whereas they are getting the same after completion of 30 years under MACP Scheme as also accepted by the CBIC vide F.No.A-26017/84/2014-Ad.IIA. Thus, MACP Scheme has been proved totally disadvantageous & discriminatory to our officers.

3.  This injustice is being done on the pretext of para 8.1 of Annexure-I of MACP OM No. 35-34/3/2008-Estt(D)dated 19.05.2009. In totally arbitrary manner, not only the GP of Rs. 5400 in PB2 & PB3 is being treated separately for the purpose of MACP upgradation but NFS/NFU of Rs. 5400 in PB2 is also being treated as one MACP upgradation whereas it is nowhere mentioned in Para 8.1 that the NFS/NFU would be treated as financial upgradation under MACP scheme. The para 8.1 says that consequent upon the implementation of Sixth CPC’s recommendations, grade pay of Rs.5400 is now in two pay bands viz., PB-2 and PB-3. The grade pay of Rs.5400 in PB-2 and Rs.5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme.

4. It is nowhere mentioned in Para 8.1 or FAQ No. 16 of the DOPT that the nonfunctional scale in Grade Pay of Rs. 5400 in PB-2 is to be treated as a financial upgradation under MACP Scheme. Nothing such to treat NFS/NFU as MACP upgradation is also mentioned either in the Govt. Resolution dated 29.08.2008 or anywhere in MACP scheme, nor it has been recommended by the CPC. The scheme also talks of “financial upgradations under MACP scheme”, not any other financial upgradation. It means that three financial upgradations are to be counted for the purpose which have been given under MACP scheme. No other financial upgradation is to be treated as financial upgradation under MACP scheme.

5. The Para 8.1 of the DOPT instructions is a corollary to para 8 and applicable only to those departments where the Recruitment Rules provide for promotion to the post carrying the same Grade Pay. Since the Grade Pay of Rs. 5400 in PB2 is not a part of the promotional hierarchy of our executive officers under CBIC but a dynamic financial upgradation under CCS(RP)Rules as NFS, it cannot be a part of MACP Scheme which is governed by different set of rules. Moreover, DOPT in its subsequent OM/Clarification dated 05/04/2021 issued on the directions of the Hon’ble Supreme Court post the case of M V Mohanan Nair has also not equated NFS/NFU with MACP upgradation. So, it can’t be treated as MACP upgradation.

6. The para 8 of the DOPT OM provides that ‘promotions earned in the post carrying same grade pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACPS’. This means promotion can offset one MACP benefit even if there is no change in grade pay. So what matters is change of grade, not grade pay.

7. The Hon’ble Supreme court also observed under para 9 of the order in the case of M. V. Mohanan Nair v UoI, “Under the Sixth Central Pay Commission, revised pay structure has been implemented with effect from 01.01.2006, whereas benefits of ACP Scheme have been allowed till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the Government of India introduced the MACP Scheme, in supersession of the ACP Scheme w.e.f. 01.09.2008.”

Thus, it is clear that NFU/NFS (non-functional scale) granted after four years of service as part of pay being implemented w.e.f. 01.01.2006 notified under statutory provisions under Article 309 independent of MACP upgradation and MACP Scheme being implemented w.e.f. 01.09.2008 as an incentive scheme, both are totally different and are not dependent on each other. Moreover, no upgradation given prior to the origin of MACP Scheme can be treated as MACP upgradation.

8. As per Para 11 of MACP OM, the grant of time scale in Grade Pay of Rs. 5400/- in PB2 before initiation of MACP scheme is not to be reopened. The para is reproduced as under:

“11. It is clarified that no past cases would be reopened. Further, while implementing the MACP Scheme, the differences in pay scales on account of grant of financial upgradation under the old ACP Scheme (of August 1999) and under the MACP Scheme within the same cadre shall not be construed as an anomaly."

Thus, any benefit/upgradation granted on or before 31.08.2008 can’t be challenged/modified/reopened as per CCS (RP) Rules read with para 11 of MACP Scheme.

9. In view of para 11 of MACP OM, it has also been clarified by the CBIC vide clarification F.No.A-23011/29/2010-Ad.IIA Dt. 20.05.11 under para 4 and 5 that there would be no effect on grant of NFS/NFU during the period between 01.01.06 to 31.08.08. Thus, NFU/non-functional scale granted during ACP period prior to introduction of MACP scheme (i.e. 01.09.2008), can no way be offset with MACP upgradation. The relevant paras are reproduced as under-

“4. Further, the benefits of ACPS of August 1999 had been allowed till 31.08.2008 and only functional promotion(s) is /are counted for the purpose of Scheme. Besides, there is no provision for counting ‘Non-functional Scale’ for the purpose of ACP Scheme.”

5. In view of the above facts and circumstances, there would be no effect on grant of ‘Non-functional Scale’  in PB-2 with grade pay of Rs.5400 during the period between 1.1.2006 to 31.8.2008, as the same is not counted under ACPS and it would not be offset against financial up gradation under the Scheme…………

10. The Hon’ble High Court of Delhi vide its judgment dated 24.08.2012 passed in WP(C) No.5146/2012 in case of Union of India Vs. Delhi Nurses Union (Regd) & Anr. held that the NFS/NFU would also not be treated as financial upgradation under MACP Scheme. The order of the High Court was also upheld by the Hon’ble Supreme Court by dismissing Special Leave to Appeal (C) CC No. 4399 of 2013 filed by the Union of India vide order dated 06.02.2018.

11. The Para 8.1 of the MACP Scheme has also been dealt with by the Hon’ble Madras High Court vide WP No. 11535/2014 in the matter of UoI & Ors vs S. Balakrishnan & Ors. Union of India assailed the order of High Court vide SLP No. 15396/2015. The same was dismissed by the Hon’ble Supreme Court and the Review petition was filed by Union of India was also dismissed. It was established by this order that-

(i) NFU/Time scale/NFS (Non-Functional Scale) cannot be offset with MACP upgradation.

(ii) GP 5400 PB3 is not higher than GP 5400 PB2 observing that the government proceeded as Grade Pay of Rs. 5400/- in PB3 is higher than the Grade Pay of Rs. 5400/- in PB2.

(iii) Next higher Grade Pay after Grade Pay of Rs. 5400/- in PB2 is Grade Pay of Rs. 6600/-.

(iv) Grade Pay of Rs. 6600/- in PB3 is to be given after Grade Pay of Rs. 5400/- in PB2 as MACP upgradation.

12. Hon’ble Delhi High Court in WP (C) No. 9357/2016 in Hari Ram & Anr Vs Registrar General case ordered on 20.12.2017 that NFU/NFS granted after 04 years of service would not count as financial upgradation for the purpose of MACP Scheme based on S. Balakrishnan verdict. The order of the Hon’ble High Court of Delhi has been implemented without further appeal.

13. As per the judgment of the Hon’ble High Court of Madras in Writ Petition No.13225/2010 titled Sh. M. Subramaniam Vs. Union of India, the officers are entitled for grant of NFS/NFU after continuous service of four years in the pay scale of Superintendent got on account of ACP/MACP. The SLP filed by UOI was dismissed establishing that NFS/NFU is independent of ACP/MACP upgradation being given after four years of it. The said decision was upheld by the Hon’ble Supreme Court in Civil Appeal No.8883 of 2011. Review Petition filed in it by UOI was also dismissed.

14. Further, in terms of Para 1(x)(e) of Resolution dated 29.08.2008 issued by the Department of Expenditure and notified in Gazeette, the grant of Grade Pay of Rs.5400 in PB-2 (referred to as ‘NFS/NFU’) on completion of 4 years regular service in Grade Pay of Rs.4800 in PB-2 to the group-B Officers of Revenue Department is revision of pay scale. It is, therefore, neither ACP/MACP nor promotion and therefore, it cannot be offset against MACP.

15. The Hon’ble High Court, Ernakulum [Order dated 04.07.2013 in OP (CAT) No. 919 of 2013 (Z)] N K Gopinathan & Allath Sundaran in para 7 also held as under:

"It was also found that the non-functional scale granted to the respondents was neither by way of promotion nor under the ACP/MACP Schemes. Learned counsel for the petitioners contended that the non-functional scale granted to the respondents should be treated as financial up-gradation and then, they were not entitled to financial up-gradation from the grade pay of Rs. 6600/- to Rs. 7600/. At the same time, the learned counsel admitted that the non-functional scale was applicable to all the employees covered by the orders in respect of the same and it was not financial up-gradation coming under the ACP/MACP Schemes. Therefore, such an argument advanced by the learned counsel has no legs to stand. The Tribunal has considered the questions in their right perspective and arrived at right conclusions. We find no infirmity or jurisdictional error with the orders passed by the Tribunal."

The Special Leave Petition preferred before the Supreme Court against the said decision has also been dismissed vide Civil Appeal Nos. 2941-42/2014 on 06.02.2018.

16. The Hon’ble High Court of Delhi vide its decision dated 22.01.2019 in WP(C) No. 4195/2015 in case of Shaira A. Khan also held based on the above dismissal of Civil Appeal Nos. 2941-42/2014,

            “The Special Leave Petition preferred before the Supreme Court against the said decision  before Hon’ble High Court, Ernakulam vide Order dated 04.07.2013 in OP (CAT) No. 919 of 2013 (Z) (supra) has also been dismissed after grant of leave vide Civil Appeal Nos.2941-42/2014 on 06.02.2018. Thus, the issue that the grant of Non-Functional Scale did not tantamount to promotion or grant of benefit under the ACP/MACP Schemes stands approved by the Supreme Court.”

17. In the case of V. K. Sharma Vs Union of India (Principal Bench, Delhi OA No. 1622/2014) also NFU granted after 04 years of service was not counted as financial upgradation for the purpose of MACP Scheme. The decision of Hon’ble Tribunal was upheld by the Hon’ble High Court.  Further, SLP No.012340 of 2018 of UOI in V.K. Sharma was dismissed by this Hon’ble Court.

18. The NFS/NFU being revision of pay scale is part of pay notified under CCS (Revised Pay) Rules, 2008 cannot be amended/revised/curtailed by an executive order as has been done by the Govt. By issuing executive instruction, Govt. illegally & irrationally resorted to modify statutory rules i.e. CCS (Revised Pay) Rules, 2008 issued under Article 309 of the Constitution, which is not sustainable in view of the settled law. In the case of Ajaya Kumar Das Vs State of Orissa & Ors. in Civil Appeal No. 4977 of 2009, as per Para 10 that executive instruction cannot over rule/override statutory rules issued under Article 309 of the Constitution. The same thing was observed by the Hon’ble High Court of Madras in Writ Petition No.13225/2010 titled Sh. M. Subramaniam Vs. Union of India in which SLP as well as Review Petition filed by the Govt. was dismissed by the Apex Court.

19. The Non-Functional scale/Non-Functional upgradation (NFS/NFU) is part of Pay Rules and it is applicable w.e.f. 01.01.2006, whereas the Hon’ble Supreme Court in the Civil Appeal No. 1579 of 2021 in the case of Union of India vs. R. K. Sharma & Ors has held that MACP is not part of pay but it is incentive. Accordingly, DOPT issued OM dated 13.07.2021 that MACP is incentive and like other allowances, it has been introduced w.e.f. 01.09.2008. Thus, NFS/NFU cannot be treated as MACP, both being two different entities and being implemented from two different dates.

20. So, our officers are entitled for grant of 2nd financial upgradation under MACP Scheme in Grade Pay Rs. 6600 and 3rd financial upgradation in Grade Pay Rs. 7600 after joining as direct Inspector. Accordingly, the officers joining one level below Inspector are entitled GP of Rs. 6600/- on 3rd MACP upgradation. The fixation of Grade Pay of Rs.5400 in PB-2 was due to revised pay scale and the same could not be offset as a financial upgradation under MACP Scheme as the scheme or Govt. Notification dated 29.08.2008 issued under Article 309 does not lay any provision for offset of NFS/NFU with the financial upgradation under MACP Scheme. There is also no provision to offset financial upgradation under MACP Scheme by time scale. And any clarification could not override the resolution issued under Article 309.

21. The grant of grant of NFS in the Grade Pay of Rs. 5400 in PB-2 cannot be treated as a financial upgradation under MACP Scheme being against the spirit of MACP Scheme, which mandates placement in immediate next higher Grade Pay. Neither para 8.1 nor MACP Scheme or DOPT FAQ dated 01.04.2021 (Q.16) says that the NFS/NFU granted in Rs. 5400 PB2 would be offset against financial upgradation under MACP scheme.

22. NFS/NFU is granted after four years regular service in Grade Pay of Rs.4800 in PB-2 or equivalent. MACP Scheme provides placement in the immediate next higher Grade Pay which is Rs. 6600. It is reiterated that the Hon’ble High Court of Delhi vide its judgment dated 24.08.2012 in WP(C) No.5146/2012 titled Union of India Vs. Delhi Nurses Union (Regd.) also granted Grade Pay of Rs. 6600 after NFS/NFU without offsetting it with the financial upgradation under MACP Scheme. The order of the High Court was upheld by the Hon’ble Supreme Court as well.

23. From comparative study of ACP & MACP scheme, an employee was entitled to 1st benefit/financial upgradation after completion of 12 years of regular service as per ACP scheme, if the regular promotion was not available during that period. The employee was entitled to the 2nd benefit/financial upgradation after completion of 12 years of regular service from the date of the first benefit/financial upgradation i.e. after completion of a total of 24 years of regular service, subject to fulfilment of prescribed conditions whereas under the MACP scheme, the employee is entitled to three benefits/financial upgradations on completion of 10, 20 and 30 years of regular service instead of two benefits/financial upgradations on completion of 12 and 24 years of regular service. The other distinction between the ACP Scheme and MACP scheme is that the former (ACP Scheme) assured the promotional grade, whereas the latter (MACP Scheme) only assured higher grade pay.

24. CBIC own clarification dated 02.01.2023 says that NFU is not linked to the number of promotions/financial upgradations. The Department of Expenditure resolution dated 29.08.2008 clearly states that NFS/NFU to Rs. 5400 shall be granted after 4 years of service in Rs. 4800 grade pay, irrespective of whether that grade was attained through promotion or ACP/MACP scheme.

25. The stand that NFS/ NFU will be offset with the financial upgradation under MACP scheme misinterprets both the MACP scheme and the NFU provisions. This position is contrary to the Ministry of Finance Resolution dated 29.08.2008 and CBIC clarification dated 02.01.2023.

26. Our officers are entitled to three financial upgradations under MACP scheme independent of NFS/NFU and Grade Pay of Rs. 6600 in PB3 after Grade Pay of Rs. 5400 in PB2 as per the Ministry of Finance Resolution dated 29.08.2008. The related OMs/clarifications to offset NFU/NFS with MACP upgradation were issued without amendment of the original resolution or rules and such OMs/clarifications are illegal as well as contrary to the Resolution dated 29.08.2008.

27. The relevant Resolution dated 29.08.2008 by the Ministry of Finance states that Group B Officers in the pay scale of Rs. 7500-12000 (pre-revised) shall be granted Grade Pay of Rs. 5400/- in PB-2 on completion of 4 years in the grade. This resolution does not differentiate between regular promotion or ACP/MACP as the means of reaching GP Rs.4800/-. Further the OM dated 21.11.2008, issued by the Department of Revenue clarifies that Four years shall be counted from the date the officer is placed in the pay scale of Rs.7500-12000 (pre-revised). Therefore, placement in the grade (not grade pay), whether by promotion or MACP, is the qualifying condition.

28. It is undisputed fact that the resolution dated 29.08.2008 is a statutory policy document and it explicitly provides that officers in Grade Pay of Rs. 4800 shall be granted Grade Pay Rs. 5400 after four years of service in that grade. The resolution does not make any distinction between those who attain Rs. 4800 via promotion and those who do so via financial upgradation under ACP or MACP.

29. The Madras High Court in M. Subramanian held that any clarification cannot override a resolution issued by the Ministry of Finance. The Supreme Court dismissed the government appeal in that matter further affirming the binding nature of the said judgment. However, NFS/NFU is a separate mechanism provided under the Govt. resolution dated 29.08.2008 and is not part of the MACP scheme. NFS/NFU is a time-bound scale and it is distinct from MACP. So, it was decided by the Hon’ble court that NFS/NFU would be granted after 4 years of getting pay scale of Superintendent as ACP/MACP upgradation. Further, NFS/NFU has not been categorically denied by the CBIC to officers who have got three financial upgradations prior to due date of NFU. The NFS/NFU arises by the completion of four years in GP of Rs. 4800 or equivalent and is not a promotion nor is it counted as an additional MACP upgradation. This position has been clarified even by the CBIC in its clarification dated 02.01.2023. The benefit of NFS/NFU after achieving the grade pay of Rs. 4800/- or equivalent through MACP has already attained finality in M. Subramaniam vs UOI up to Apex Court. Further in their letter F. No. A-23011/06/2021-Ad.IIA, dated 02.01.2023, Central Board of Indirect Taxes and Customs have clarified that NFU is not linked with number of promotions.

30. The Hon’ble Supreme Court in the case of UOI & Ors. Vs Ex. HC/GD Virender Singh in SLP (C) No. 16442/2021 in Para 9 of the order held, “9. As rightly held in R.K. Sharma (supra), the aforesaid reasoning given in the case of Balbir Singh Turn (supra), in our opinion, has not been accepted by the three Judge Bench decision in the case of M.V. Mohanan Nair (supra), which in clear terms holds grant of financial upgradation under the MACP Scheme is not a matter of pay structure, but an incentive scheme brought into force to relieve stagnation which operates on its own terms. We may add that the pay scales are fixed and revised by the rules which are enacted in exercise of powers conferred by the proviso to Article 309 and clause (5) of Article 148 of the Constitution of India. Therefore, vide Notification dated 29th August 2008, the Central Civil Services (Revised Pay) Rules, 2008 were enacted vide G.S.R. No. 622(E). Rule 1(2) states that the Rules, as enacted, shall be deemed to have come into force on 1st January 2006. The aforesaid Rules neither postulate nor have any provision for grant of financial upgradation under the MACP Scheme.………………………”

31. Our officers have totally been discriminated by the wrong implementation of MACPS because of being forced to get after 30 years of service under modified ACP Scheme what they were entitled to get within 24 years in original ACP Scheme, i.e., pay scale of Rs. 8000-13500/- equivalent to the grade pay of Rs. 5400/- in PB3 as also accepted by CBIC in F.No.A-26017/84/2014-Ad.IIA. These employees/pensioners are at loss instead of getting any benefit by the implementation of MACPS. The contention that NFS/NFU is to be offset against MACP benefit is contrary to the MACP Scheme which provides that whenever a person has spent 10 years of service continuously in the same grade pay, he/she is eligible for financial upgradation. A specific NFS/NFU linked with 4 years of service can no way be termed as financial upgradation under MACPS. The NFS/NFU has also not been offset with MACP by the State Governments like Uttar Pradesh etc., where the scheme has also been drawn based on the recommendations of 6th CPC. Moreover, NFS/NFU can no way be termed as financial upgradation under MACPS particularly when granted prior to inception pf MACP scheme. It is also mentioned in MACP OM itself that past cases would not be opened. The CBIC also issued circular that the NFS/NFU granted prior to inception of MACP scheme, i.e., 01.09.08 would not be counted as MACP upgradation.  

32. As per the provisions of MACPS-

(i) Screening committee is constituted (para 4).

(ii) Recommendations of screening committee are placed before appointing authority (para 5).

(iii)The employees are to give option under FR22 (1) (a) (1) (para 7 of Annexure).

(iv) APAR benchmark is required for MACP upgradation (para 17 of Annexure).

No such condition is applicable for the grant of NFU/Non-functional Grade Pay/time scale/NFS/NFG after four years of service as it is governed and granted under CCS(RP)Rules, 2008 w.e.f. 1/1/2006 and can’t be offset with MACP upgradation. The MACP requires a screening committee, APAR benchmarks, specific options under FR22(1)(a)(1) etc. whereas the NFS/NFU is a time-bound scale granted automatically after four years of regular service in the Grade Pay of Rs. 4800 without such conditions.

33. As per the Govt Order F. No. 35034/3/2015-Estt. (D) dated 28.09.2016:

“Fixation of pay will follow the same principle as that for a regular promotion in the Pay Matrix……”

Therefore, the administration cannot take a stand that any financial upgradation automatically granted after 4 years on the basis of pay structure on completion of 4 years of service shall amount to Financial Upgradation under MACP. For MACP Financial Upgradation, it MUST follow pay matrix of Regular Promotion. For MACP Financial Upgradation, the fixation of pay MUST follow the same principle as that for a “regular” promotion in the pay matrix. The NFU granted after 4 years, does not follow the same principle as that for regular promotion. In short, its neither a pay structure in pay matrix for the promoted “Regular Superintendent” nor its for promoted ‘Regular Assistant Commissioner”. The NFU is purely a pay structure for those who had completed 4 yrs of service.

34. It is also worth noticing that a government servant gets many financial upgradations regularly. For example, every year he/she gets salary upgradation by annual increment, every 6 months he/she gets DA upgradation, HRA, LTC upgradation whenever any upgradation in basic etc. Therefore, these are not counted as a part of MACP Financial Upgradation because of not being mentioned in the MACP guidelines. Similarly, NFU is also not mentioned in the MACP guidelines and hence, not to be considered as MACP upgradation like other upgradations are also not considered.

35. The replacement of words ‘GRADE PAY’ in para 1 of Annexure to DOPT OM Dt. 19.05.2009 from ‘GRADE’ in the Resolution dt. 29.08.2008 is arbitrary. Accordingly, in para 1 of the DOPT OM dt. 19.05.09, the words '10 years of continuous stay in grade pay' should be '10 years of continuous stay in a GRADE' as per the Resolution.

36. Here is the RESOLUTION of Govt. of India after 6th CPC

 

 

                       

According to the Govt. Resolution,

A.      There will be three upgradations under (Modified) ACP scheme. (1 above)

B.      The financial upgradation will be available after 10, 20 and 30 years of service whenever a person spent 10 years continuously in the same grade. (iv above)

C.      There is also no mention that NFU/NFS granted after 4 years of service as the part of pay scale would be treated as Financial Upgradation under MACP Scheme.

However, the DOPT OM changed the para (iv) of the resolution as follows.

1.       There shall be three financial upgradations under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service respectively. Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.

From the above, it is evident although the intention of Govt. is to give financial upgradation under MACP scheme after 10 years of continuous stay in the grade. But DOPT changed this to 10 years of continuous stay in the grade pay.

37. The 6th Central Pay Commission, on the recommendations of which the MACP Scheme was introduced, very specifically said under para 2.2.19.x that the grade pay of Rs. 5400/- in PB2 and PB3 is one and same. The 6th CPC made following observation and recommended:

“The scale of Rs. 8000-13500/- is the entry grade for Group A posts for which the Running Band PB-3 has been recommended. Many Group ‘B’ posts had been extended the scale of Rs. 8000-13500/- even though these continued to be Group ‘B’ posts. All such Group ‘B’ posts shall now be placed in the running band PB-2 alongwith a grade pay of Rs. 5400. To ensure that existing parity in terms of pay scale of these posts vis-à-vis the entry scale of Group A posts is not disturbed, the same grade pay of Rs. 5400/- has been prescribed.”

38. The 7th Central Pay Commission also observed and reported very specifically under para 7.1.4.b that the Grade Pay of Rs. 5400/- in PB2 and PB3 is common (one and same). Based on this para, Level-9 and Level-10 have been introduced by the govt to undo the pecuniary difference of Rupee zero between the Grade Pay of Rs. 5400/- in PB2 and PB3.  The 7th CPC made following observation and recommended:

“In so far as the non-functional upgrade is concerned, in the newly restructured pay matrix the earlier situation of a common grade pay i.e., 5400 prevailing in PB2 and PB3 has now been rationalized. Accordingly, the non-functional upgrade will henceforth be from level 8 to level 9. In the case of all such cadres/services where non-functional upgradation is presently available across two levels, for example, from GP 4800 to GP 5400 (PB 3) the same will now be available across only one level for example, from GP 4800 to GP 5400 (PB-2) or in the new matrix from level 8 to level 9.”

39. The OM issued by DOPT vide No. 35034/3/2008-Estt. (D) Dt. 09.09.10 also clarifies at 3(B) that an officer appointed in pay scale of Rs. 5500-9000 (pay scale of our Inspector enhanced later to 6500-10500) would get-

(1) Ist ACP upgradation in Rs. 6500-10500 (pay scale of our   Superintendent later enhanced to Rs.7500-12000).

(2) IInd ACP upgradation in 10000-12500 equivalent to GP 6600.

(3) IIIrd MACP upgradation in GP 7600 in immediate next higher Grade Pay.

40. Thus, it is evident from the above submissions that-

(i) NFU/NFS granted after 4 years service as the part of pay scale can no way be offset with MACP upgradation.

(ii) GP of Rs. 5400 in PB2 and PB3 is one & same and can’t be treated separately because higher grade pay is to be given as MACP upgradation. GP of Rs. 5400 in PB3 is no way higher than the GP of Rs. 5400 in PB2.

40. In view of above, it is requested to kindly grant-

(i) GP of Rs. 6600/Level-11 & 7600/Level-12 as 2nd & 3rd MACP upgradation to all of our officers recruited/appointed as Direct Inspector in GP of Rs. 4600/Level-7.

(ii) GP of Rs. 5400/Level-10 & 6600/Level-11 as 2nd & 3rd MACP upgradation to all of our officers recruited at one level below the Inspector.

41. An early response in the matter is very much expected and requested.

Thanking you.

Yours sincerely,

                                                                                                                                                       

(HARPAL SINGH),

Secretary General.