" 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, 12 May 2014

MINOR AMENDMENTS HAVE BEEN MADE BY SHRI LOKANATH MISHRA ON THE DRAFT REPLY TO QUESTIONNAIRE TO BE SUBMITTED TO 7TH CPC.

ALL INDIA ASSOCIATION OF CENTRAL EXCISE


GAZETTED EXECUTIVE OFFICERS

President:                                          Address for communication:                    Secretary General:
Lokanath Mishra                                 240, Razapur, Ghaziabad-201001    (                  Ravi Malik
Mob. 09437314941               mail Id: ravimalik_sweet@yahoo.com                         Mob.09868816290
Vice Presidents: Sampat Rai, Vatan Kamble (Central); Anurag Chaudhary, Ravi Joshi (North); A. Ravinder Singh, Rajan G. George (South); A. S. Roy, Shubhrangshu Deb (East); P. D. Nimhan S.KJha (West)
Joint Secretaries: Anand Kishore, Laxmi Lal Singhvi (Central); N. N. Lal, R. K. Solanki (North); G. Srinath, S. Chandrasekar (South); Ashwini Majhi, V. N. Jha (East); G. K. Jhala, M. K. Misra (West) Office Secretary: C. S. Sharma (Mob. 09313885411) Treasurer: N. R. Manda (Mob.09871483585)
(Recognised by G.O.I., Min. of Fin. vide letter F.No. B. 12017/10/2006-Ad.IV A Dt.21.01.08)

Ref. No. ----------/------------/14                                                         Dt. --.05.14
                                                                                             

The Secretary,
7th Central Pay Commission,
New Delhi

Sub: - Reply to Questionnaire

Respected Madam,

We are enclosing herewith reply to Questionnaire on behalf of 
All India Association of Central Excise Gazetted Executive Officers, an Association representing 13,000 no. of  Gazetted Officers  for kind consideration of the Commission.  We  would like to  urge before 7 th  Central Pay Commission  that the CPC  should recommend to the  Central Government  to accord the interim relief in favour of all central government employees to the tune of 25 per cent interim relief in basic pay            ( GP +PB)  further we urge the 7th CPC to recommend for merger of 50 per cent DA with the basic pay w.e.f 01.01.2011 and the date of effect of 7th CPC is to be 01.01.2014-. The Memorandum of the Association will be filed separately. We may kindly be allowed to appear before the 7th CPC to give oral evidences.


With regards,

Yours faithfully,


(Ravi Malik)
Secretary General.
Copy to Secretary ( DOPT)/ Secretary (Expenditure)/ Secretary(Revenue)/ Chairperson , CBEC.
 REPLY TO THE QUESTIONNAIRE PRESCRIBED BY 7TH CPC.
1. Salaries
1.1 The considerations on which the minimum salary in case of the lowest Group ‘C’ functionary and the maximum salary in case of a Secretary level officer may be determined and what should be the reasonable ratio between the two------------.
  • The total value of world income is closing in on $70 trillion (£43.9tn) per year, and there are seven billion people in the world, so the average income is heading towards $10,000 (£6,273)/  per person per year, which is approximately Rs. 55,000.00 per month. The minimum salary should be fixed at 50% of Rs 55,000.00 i.e. 27,500.00 per month at least and the maximum salary should be 3 times of Rs. 55,000.00 i.e. Rs 1,65,000.00 . Accordingly the ratio between higher salary and minimum salary should be 6:1.  The pay of Gr-B Gazetted officers should be 50% of 1,65,000 i.e 82,500.   The earlier pay Commissions had fixed the ratio between higher salary and minimum salary as 10:1.  However since at present our country has adopted our Economics policy basing on Market Economy (Globalization), the minimum and maximum salaries are required to be fixed on the basis of pay fixation made by  developed countries.   In USA it is 4:1, in UK it is 6:1 and in France it is 6.6:1 hence considering the same the appropriate one is 6:1. In other words at the highest level , officials may receive salaries no higher than 6 times the minimum salary.
1.2 What should be the considerations for determining salary for various levels of functions falling between the highest level and the lowest level functionaries?------
GAZETTED OFFICER is a higher level ranked public servant . These officers in the Central Government are entrusted  with some supervisory and managerial role, they are the second level of command structure among the broad categories of central civil services. At present while ten different  grade pays have been granted  in favour of Gr ‘A’ officers, but  a single  grade pay has been granted to Gr-B Gazetted Officers. Parity is the basic concept of our Constitution of India . The Ministry of Finance has clearly stated that “ in no two organisations, the assigned duties of comparable posts can be totally identical and so in the case with the Gazetted Executive Officers  of CBI, IB, Central Police Organisations, Customs, Income Tax and Central Excise. However, the 1st, 2nd , 3rd, 4th and 5th Pay Commissions by assigning identical pay scales to the Gazetted Executive Officers  of  all these departments  have established the comparable nature of the level of responsibilities assigned to the Gazetted  Executive Officers  of each of the categories mentioned above. This was also upheld by the committee set up by the former Finance Minister on this subject as well as in the judgement dated 22.03.2002 of Jabalpur Bench of CAT.” The pay scale of Dy SP/CBI was upgraded by Govt during 1996 retrospectively from 01.01.86 without upgrading the pay scale of analogous posts  and disturbing the traditional parity. Therefore the post of Superintendent of Central Excise  which is an analogous post to DySP / CBI as per Dy SP/CBI recruitment Rules is  entitled to get the pay scale/grade pay as to be  granted to the cadre of DySP/CBI etc. duly  classifying such post as Gr-A.  While the post of Inspector of Central Excise is the feeder grade for the post of Superintendent of Central Excise, Inspector of CBI is feeder post for the post of Dy SP/CBI. The Govt. has granted similar GP ( i.e. GP 4600 in PB-2)  to the Inspectors of  both the organisations, hence both the promotional posts are also required to get equal  grade pay.  As per the Recruitment Rules of CBI framed under article 309 of Constitution of India, the Central Excise and Customs Department is considered as a Central Police Organisation, for which the executive posts of Central Excise department are considered as analogous posts of CBI  and therefore executive officers of Central Excise department are being joined in CBI on deputation.  The  Executive Officers of Central Excise and Customs Department are uniformed Officers and the Central Excise Department has  the same structural features, same command and control elements, serve under similar harsh service conditions, , as the army. In spite of the similarities in the duties performed by the Central Excise personnel but  they  are deprived of privileges extended to defence services and police services.  The command structure of Central Excise  is similar to the army, and so is its rank structure, except that the ranks in Central Excise  have different nomenclature ( Chairman, Member, Principal Chief Commissioner, Chief Commissioner,  Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst. Commissioner, Superintendent, Inspector, Havaldar, Sepoy ). The command and control system  Central  Excise  is also similar to the Army . In accordance with the NDPS Act and the Central Excise Act, the executive officers of Central Excise Department can exercise the power of Police Officers.  The personnel of Central Excise and Customs are deployed on the borders (with Pakistan, Bangladesh, Nepal, China and Myanmar), International Airports and Sea Ports and are actively engaged in counter insurgency operations with smugglers and tax evaders etc. within the country. These personnel have suffered heavy casualties while dealing with trans-border crimes. Their duties are akin to the Army,  and they are  responsible for the guarding Economics borders of the Country, and are also responsible for security of the nation. In fact, in J & K and in the North-eastern states of India, the Central Excise personnel  are deployed side by side with the Army, at times, on the same location. They perform their duties in most adverse conditions coupled with threat to their life either by enemy action, insurgents and the climatic hazards in high altitude, deprived of domestic life, which leads to deterioration of the physical and mental ability. 
The Central Board of Excise and Customs had declared before the IV CPC that Executive Officers of Central Excise Department are uniformed officers and they are  performing more arduous and hazardous nature of duties than executive officers of other departments. The first level of gazetted officers, such as the Superintendent of central excise, are also the first appellate officer the public has to confront while dealing with the department. These officers not only display the stamp of authority of the government to the general public but also present the true face of the government to the people. In fact the government's attributes are measured and tested by the actions and behaviour of these first level gazetted officers who actually creates the image of the government. This means that a happy and contended gazetted officer will positively impact the efficiency, effectiveness and the image of the department and the government and therefore, it will serve the best interests of the government if his remuneration and carrier prospects are augmented and refurbished to an optimum level. Raja Chellia Committee recommended higher pay scales to executive officers of taxation department.  In spite of the fact that the service conditions of Central excise & Customs  personnel are akin to the Central Police Organisations/ CBI and  Defence Armed Force personnel, they are not compensated with any additional incentives or allowances, as in the case of CBI/Police/Army. An Army jawan, posted in Leh or Ladakh gets Military Service Pay, for reasons that he is a part of army, but a  Central Excise and Customs personnel , serving under same conditions and in the same location, surviving in sub-zero temperatures is deprived of the same , without any potent reasons. The post of Superintendent of Central Excise is an analogous post to the post of Dy SP/CBI, whereas the higher benefits granted to the post of Dy SP/CBI apart from higher Gr-A salary, such as one month additional pay etc  have not been granted to the post of Superintendent of Central Excise. It is the harsh conditions of service, and their performance which should matter, and not the name of the wing of the Force, of which these personnel are part of. Denial of ‘benefits to Superintendent of Central Excise at par with the post of Dy SP/CBI  is discriminatory, arbitrary, illegal and unjustified. The Group B post( Inspector of Central Excise , which is the feeder grade to to the grade of Superintendent of Central Excise) should start from the replacement GP 5400/- in PB-2.   It is required to remove the anomalies in the pay of Direct Recruitees and the promotees in the all cadres.
 2. Comparisons
2.1 Should there be any comparison/parity between pay scales and perquisites between Government and the private sector? If so, why? If not, why not?-------------
In the era of globalization, there should be a parity in between the pay scale  and other emulations  of gazetted officials and  the similar placed managerial persons of  foreign companies engaged in India at least.

2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not?-------------
Yes. There should be parity in between the pay scale and other emulations of gazetted officials and the similar placed managerial persons of profitable public sector companies.

2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance?------------
The concept of performance related pay structure was actually introduced by foreign companies. Hence if parity in salary will be maintained, then automatically variable pay may be linked to performance however variable pay should be granted in the form of Bonus only ,  Bonus is nothing but considered as salary as the same is subject to Income Tax. .Almost all  1.6 million civilian full-time federal employees of USA received merit bonuses or special time-off awards. The typical bonus amounted to 1.6 percent of salary.  This system is  evidence of a talented workforce that performs admirably, and often at salary levels inferior to those of the private sector.
3. Attracting Talent
3.1 Does the present compensation package attract suitable talent in the All India Services & Group A Services? What are your observations and suggestions in this regard?-------------
There should not be any direct entry in Gr-A post. Direct entry must be  in Gazetted Gr-B posts or at least 90% of promotional posts in Gr-A  are required to be reserved for promotees and the gazetted officers are to be promoted directly to STS posts instead of JTS posts.. The top of the cadre post or the top post dealing with HR of the cadre must be an official of another cadre. For example Chairman of Central Board Excise and Customs(CBEC) or Member (P&V) of CBEC should be other than IRS(C&CE) officials.
3.2 To what extent should government compensation be structured to attract special talent?-----------
There should be a provision of direct recruitment in the Gr-B gazetted post and after selection, the selected persons should go further  professional  study for at least 2 years in reputed institutions including foreign institutions.  No one should enter Gr-A directly or at least 90% of promotional posts in Gr-A  are required to be reserved for promotees and the gazetted officers are to be promoted directly to STS posts instead of JTS posts. .
4. Pay Scales
4.1 The 6th Central Pay Commission introduced the system of Pay Bands and Grade Pay as against the system of specific pay scales attached to various posts. What has been the impact of running pay bands post implementation of 6th CPC recommendations?---------------
The Pay Band and Grade Pay system  can be continued provided there should not be any same grade pay of lower PB  in higher PB.  For example GP 5400 is in both PB-2 and PB-3 at present which caused providing no benefit to employees, hence this  system should avoided. 
4.2 Is there any need to bring about any change?--------------
Yes. The higher posts should have higher GPs and not same Grade Pay having different PBs. Difference between lower GP to immediate higher GP must be 2000.

4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government?-------------
Talents can be attracted if proper studies in reputed institution can be provided before entering in service after selection.  No one should enter Gr-A directly or at least 90% of promotional posts in Gr-A  are required to be reserved for promotees and the gazetted officers are to be promoted directly to STS posts instead of JTS posts. .
4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales pay band to be rationalized and if so in what manner?--------------
Yes all the Gr.B gazetted officers in general, Superintendents of Central Excise in particular should be granted one Grade pay at par with Dy SP of CBI on the reason as stated vide  para-1.2 above. 
4.5 Is the “grade pay” concept working? If not, what are your alternative suggestions?
There should not be same GP in different PBs. Difference between lower GP to immediate higher GP must be 2000.It is required to remove the anomalies in the pay of Direct Recruitees and the promotees in the all cadres
5. Increment
5.1 Whether the present system of annual increment on 1 July of every year uniformly in case of all employees has served its purpose or not? Whether any changes are required?-------------
According to us , the commission must recommend, for administrative expediency, two specific dates as increment dates. Viz. 1st April  and 1st October.
5.2 What should be the reasonable quantum of annual increment?--------------
The reasonable quantum of increment should not be less than 10% of the  GP plus basic pay of PB.

5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?-------------
Higher achievers can be granted 5% more in form of Bonus. Bonus is nothing but considered as salary as the same is subject to Income Tax. Almost all  1.6 million civilian full-time federal employees of USA received merit bonuses or special time-off awards. The typical bonus amounted to 1.6 percent of salary.  This system is  evidence of a talented workforce that performs admirably, and often at salary levels inferior to those of the private sector. 

5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20,30 years of regular service, counted from the direct entry grade. What are the strengths and weaknesses of the scheme?
Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/ or those obtaining professional degrees?-------------------------
For a number of years, our Association  has been demanding that Inspectors/ Superintendents of Central Excise  who had not been given promotions for 10, 20 or 30 years be given promotions or upgradations by MACP (Modified Assured Career Progression Scheme) on the basis of their respective Promotional Hierarchy. The Government refused to oblige by stating very clearly  that as per recommendations of  6th CPC , up gradation under MACP will be given only on the basis of Grade Pay Hierarchy. There are no such recommendations in the ACP Scheme (Assured Career Progression Scheme), which was introduced by the 5th CPC.  A lot of confusion was created after the introduction of the Grade Pay Structure by the 6th CPC. Two distinct hierarchies were created – Promotional Hierarchy and Grade Pay Hierarchy. Promotional Hierarchy is based on the pay structure depending upon the employee’s grade and department. Two employees with similar designations and ranks, but in different departments, will notice this difference. This is not applicable to everybody. On the other hand, Grade Pay Structure is common for all. This is the reason why there are differences between an employee who gets promotions under the regular system and one who gets promotion under MACP. In order to rectify this discrepancy, a number of employees  had approached the courts and had succeeded. Assured Career Progression scheme was somehow a boon to Inspectors and Superintendents of Central Excise Department who had been suffering without promotions for years. Employees who joins in Central Excise Department  have to face countless hurdles because of complete stagnation in this department. Major problem of employees of this department is  with promotions. There are many who didn't get any promotions for 30 years. Countless others retired without getting a single promotion in their careers. To put an end to this, our Association fought and made the Government to implement the ACP (Assured Career Progression) promotion scheme. It enabled the Inspectors/Superintendent , who didn't get any promotion for 12 and 24 years, to get one or two financial upgradation  respectively. All most all direct recruit Inspectors   benefited from this. The financial upgradations  were granted  to the direct recruit Inspectors based on the ‘Promotional Hierarchy’. This was introduced in the 5th CPC and continued to be enforced until 31.08.2008. Near about 8000 nos. of Superintendents of Central Excise(Gr-B)   have completed 30 year of services as Inspectors and Superintendents combinedly at present  and waiting for their promotion to Gr-A. The Inspectors ( Gr-B) who are joining in the department as direct recruit  are retiring by getting one promotion to the grade of Superintendent (Gr-B)  in their service career. Whereas those similar placed employees who are joining in Income Tax department or in CSS or as Examiner in Customs are getting almost 5 to 6 promotions in their service career, While 1992 batch Examiners of Customs  are being promoted to the grade of Asst. Commissioner Gr-A, the 1975 batch Inspectors are still Superintendents (Gr-B) and are being forced to work under the 1992 batch of Examiners who are quite juniors  to them in service. The parity is the basic concept of our Constitution, parity in promotion is required to be maintained amongst the similar placed employees , but till date the Govt. of India have not initiated any action to maintain parity in promotion amongst the Examiners/Preventive Officers and Inspectors of CBEC and other counterparts of Income Tax/ CSS.. The educational qualification, mode of recruitment and Grade Pay for these post are similar. The Examiner, Preventive Officers and Inspectors and counterparts of Income Tax/CSS are being recruited by the same examination conducted by SSC. The Honourable Apex Court have decided that one should at least get 3 promotions in his service career. But Govt have not allowed two promotions to the cadre of Inspector of CBEC. Recently the Honourable Apex Court have decided for revision of recruitment Rules and making regularization of pending adhoc promotions since 97 on the basis of such new  recruitment rules, but Govt. of India did not implement ,  the  said order dated 03.08.11  by not regularizing the pending adhoc promotions on the basis of said new amended /revised recruitment rules retrospectively. Whereas in past in a similar occasion Govt made adhoc regularization with retrospective effect to allow benefits to the officers of the Customs wing. Major revenue of Govt. of India are being collected  through CBEC. Inspectors and Superintendents are basically responsible for collection of such major revenue. But these officers are not being awarded at least two promotions in their service career and are not being granted with appropriate pay as has been granted to similar placed employees of Central Govt.
             In the 6th CPC, MACP was introduced instead of ACP. Though both were almost the same, there were some differences. These differences created a lot of confusions. The special feature of MACP was that instead of 12 and 24 years, it ordered promotions for employees who weren't given any career advancements in 10, 20 and 30 years. The promotions given under MACP were not in accordance to the ‘Promotional Hierarchy’. Instead, they followed the ‘Grade Pay Hierarchy’. This was the biggest drawback of MACP. Getting promotions for a raise of Rs 200 or nil remained unacceptable for many, ( while the post of Inspector is having GP-4600 in PB-2, the promotional post Superintendent is having GP4800 in PB-2). Finally, one could say that MACP earned the anomaly of being dragged to the court the most number of times. The Honourable Supreme Court of India  had directed that 3 actual promotions should be granted one officials in his entire service career at least. The Honourable Supreme Court of India vide  SLP No. 7467/2013  which was filed by the Governement  against the judgement of the Hon’ble High Court Chandigarh in CWP No. 19387/2011 has confirmed the  order dated 31.05.2011 of CAT Chandigarh Bench for grant of financial upgradation in the promotional hierarchy under MACP. (An affected employee had challenged the Government’s decision on the subject vide his O.A. No. 1038/CH/2010 in CAT Chandigarh and that the Hon’ble CAT Chandigarh vide its order dated 31.05.2011 granted the prayer of the petitioner and directed the authorities to grant MACP benefit in the hierarchy of promotional grade. Thereafter, the Union of India represented by the Secretary, DoP&T appealed to the Hon’ble High Court of Punjab and Haryana vide CWP No. 19387 of 2011. This appeal of the DoP&T was subsequently dismissed vide order dated 19.10.2011. The Government thereafter approached the Hon’ble Supreme Court vide SLP No. 7467/2013, the Hon’ble Supreme Court dismissed the said SLP. In view of the above, the issue now stands settled that eligible employee needs to be given MACP benefits in the promotional hierarchy only)
There should be a provision to allow minimum actual  5 promotions to Gr-B gazetted Officers  like the GR-A pots on time bound manner . The Time Bound promotional scheme should be introduced in all departments particularly in Central Excise Department. If 5 promotions cannot be granted then there should be a provision of 5  in situ promotions  in the departmental promotional hierarchy in a time bound manner.  ACP/MACP is a time bound promotional scheme, the scheme is required to be continued  in the form of in situ promotional scheme ( Higher pay scales with higher designation)to motivate personnel  especially in  Central Excise and Customs  Department , where normal promotional avenues are few . Normal promotions are dependent upon the availability of vacancies at higher levels. The job requirement of  higher level  in this department  is very much  capable of creating requisite number of higher level positions whereas  by not conducting  Cadre restructuring in time the higher level posts could not  be created on the basis of functional necessity basis. Time bound promotional scheme in form of in situ scheme is required to be introduced in this department especially.  However ACP/ MACP alone can take care of that specific situation provided the beneficiaries are required to be granted with a designation along with financial benefits.. The arduous route of career progression through examination and professional qualification, no doubt will be preferred if and if only such promotions are made available for the eligible candidates within a reasonable period of residency in the feeder cadre. Say two years. The batch wise upgradation granted to Gr-A cadres are required to be introduce in Gr-B gazetted carders. Since in course of financial upgradation under ACP/MACP ,higher grade pay is being granted, if  higher designation in promotional hierarchy  is to be granted, then Govt. can assign more responsibilities to employees
The financial up gradation granted other than the provisions of ACP/MACP( such as  granting of time scale or non-functional grade pay etc) should not  upset upgradation under ACP/MACP. Further the Time Scale/ NFGP granted  in promotional hierarchy are required to be granted to ACP/MACP beneficiaries on completion of prescribed qualifying of service also. For example the post  of  Superintendent  of Central Excise is having two grade pays viz. 4800 in PB-2 and 5400 in PB-2 on completion of 4 years as Supdt. Similarly on promotional hierarchy  GP 6600 in PB-3 is Senior Time scale on completion of 4 years in JTS and GP 8700 in PB-4 is NFGP on completion of  2 years in JAG. The beneficiaries of ACP/MACP are also required to be granted the benefits of such Time Scale/ NFGP on completion of required qualifying of service after getting the financial upgradation  under MACP. For example the beneficiaries of  1st  MACP holders having GP 4800 in PB-2  in promotional hierarchy  can get GP 5400 in PB-2 on completion of 4 years on GP4800 in PB-2. Similarly  beneficiaries of 2nd MACP holders  can get GP 6600 in PB-3 on completion of 4  years in GP 5400 in PB-3.   Similarly 3rd MACP holders having GP 7600 in PB-3 in promotional hierarchy  can get GP 8700 in PB-4 on completion of 2 years in GP 7600 in PB-3.  There most be provision for  stepping up the Pay Scale of Seniors on par with the juniors who are elevated on account of ACP/MACP.  In the era of globalization it is required to   introduce time bound or flexible promotional scheme in place of ACP/MACP to grant 5 actual promotions to the employees of Central Excise department...
6. Performance
What kind of incentives would you suggest to recognize and reward good performance?
More incentives should be granted to  good performers in form of annual bonus only. Almost all  1.6 million civilian full-time federal employees of USA received merit bonuses or special time-off awards. The typical bonus amounted to 1.6 percent of salary.  This system is  evidence of a talented workforce that performs admirably, and often at salary levels inferior to those of the private sector.
7. Impact on other organizations
Salary structures in the Central and State Governments are broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, Panchayati raj institutions & autonomous institutions.

To what extent should their paying capacity be considered in devising a reasonable remuneration package for Central Govt. employees?-------------------------
The Gr-B gazetted officers of State Governments are in better position. Before inducting to all India services, they are being earned at least 5 promotions. Hence the Gr-B gazetted officers at least be granted 5 promotions before entering in to organised Gr-A service by introducing a separate service.
8. Defence Forces
8.1 What should be the considerations for fixing salary In case of Defence personnel and in what manner does the parity with civil services need to be evolved, keeping in view their respective job profiles?--------------------
The service conditions of Central excise & Customs personnel are akin to the Central Police Organisations/ CBI and Defence Armed Force personnel; they are not compensated with any additional incentives or allowances, as in the case of CBI/Police/Army. An Army jawan, posted in Leh or Ladakh gets Military Service Pay, for reasons that he is a part of Army, but a  Central Excise and Customs personnel , serving under same conditions and in the same location, surviving in sub-zero temperatures is deprived of the same , without any potent reasons.  It is the harsh conditions of service, and their performance which should matter, and not the name of the wing of the Force, of which these personnel are part of. The  Executive Officers of Central Excise and Customs Department are uniformed Officers and the Central Excise Department has  the same structural features, same command and control elements, serve under similar harsh service conditions, , as the Army. In spite of the similarities in the duties performed by the Central Excise personnel but they  are deprived of privileges extended to defence services and police services.  The command structure of Central Excise is similar to the army, and so is its rank structure, except that the ranks in Central Excise have different nomenclature ( Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst. Commissioner, Superintendent, Inspector ). The command and control system  Central  Excise  is also similar to the Army . The Central Board of Excise and Customs had declared before the IV CPC that Executive Officers of Central Excise Department are uniformed officers and they are performing more arduous and hazardous nature of duties than executive officers of other departments. Hence the Executive officers of Central excise Department are entitled to all benefits as to be granted to Defence personnel by the 7th CPC.
8.2 In what manner should the concessions and facilities, both in cash and kind, be taken into account for determining salary structure in case of Defence Forces personnel.----------------
The personnel of Central Excise and Customs are deployed on the borders (with Pakistan, Bangladesh, Nepal, and Myanmar), International Airports and Sea Ports and are actively engaged in counter insurgency operations with smugglers and tax evaders etc. within the country. These personnel have suffered heavy casualties while dealing with trans-border crimes. Their duties are akin to the army, which is also responsible for the guarding Economics borders of the Country, and are also responsible for security of the nation. In fact, in J & K and in the North-eastern states of India, the Central Excise personnel  are deployed side by side with the Army, at times, on the same location. They perform their duties in most adverse conditions coupled with threat to their life either by enemy action, insurgents and the climatic hazards in high altitude, deprived of domestic life, which leads to deterioration of the physical and mental ability.  In spite of the fact that the service conditions of Central Excise  personnel are akin to the Defence Armed Force personnel, they are not compensated with any additional incentives or allowances, as in the case of Police/CBI/Army. Therefore 7th CPC is requested to  consider extending the grant of  all pay benefits  to the  executive officers of Central Excise Department which will be provided to the personnel of Army.
8.3 As per the November 2008 orders of the Ministry of Defence, there are a total of 45 types of allowances for Personnel Below Officer Rank and 39 types of allowances for Officers. Does a case exist for rationalization/ streamlining of the current variety of allowances?-------------
THE EXECUTIVE OFFICERS OF CENTRAL EXCISE DEPARTMENT ARE ENTITLED FOR ALL BENEFITS TO BE EXTENDED BY 7TH CPC TO DEFENCE PERSONNEL.
8.4 What are the options available for addressing the increasing expenditure on defence
pensions?----------------
The Central Government has decided to introduce ONE RANK ONE PENSION’ to the three wings of the defence service personnel. The  Executive Officers of Central Excise and Customs Department are uniformed Officers and the Central Excise Department has  the same structural features, same command and control elements, serve under similar harsh service conditions, , as the army. In spite of the similarities in the duties performed by the Central Excise personnel but they are deprived of privileges extended to defence services and police services.  The command structure of Central Excise is similar to the army, and so is its rank structure, except that the ranks in Central Excise  have different nomenclature ( Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst. Commissioner, Superintendent, Inspector ). The command and control system Central Excise  is also similar to the army . Under these conditions, when the juniors start getting more pension than the seniors, it violates the hierarchy of command system, as is applicable to all Armed Forces. It is a well establish dictum based on the Supreme Court judgement of 1982 and accepted by the Central Govt, that,” pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past services rendered”. In another judicial ruling, it has been stated that different criteria for grant of unequal pay / pension for the same rank on the basis of cut-off date of retirement violates Article 14 (equality before law) of the constitution. All pensioners irrespective of rank are entitled to same pension. In the case of defence services, the Govt has, rightfully, realized the truth of this fact, and given succor to the pre-2006 defence pensioners to come up to the level of their post 2006 retirees of equivalent rank and status by granting them ‘One rank one Pension’. However, the personnel of Central Excise and Customs , who have equitable dispositions, command structure, rank system and nature of duties are grossly ignored, discriminated and forced to face the ignominy of far less emoluments vis-à-vis their juniors retiring post-2006.  The personnel of Central Excise and Customs  are deployed on the borders (with Pakistan, Bangladesh, Nepal, and Myanmar), International Airports and Sea Ports  and are  actively engaged in counter insurgency operations with smugglers and tax evaders etc. within the country. These personnel  have suffered heavy casualties  while  dealing with trans-border crimes. Their duties are akin to the army, which is also responsible for the guarding  Economics  borders of the Country, and are also  responsible for security of the nation. In fact, in J & K and in the North-eastern states of India, the Central excise personnel  are deployed side by side with the army, at times, on the same location. They perform their duties in most adverse conditions coupled with threat to their life either by enemy action, insurgents and the climatic hazards in high altitude, deprived of domestic life, which leads to deterioration of the physical and mental ability.  In spite of the fact that the service conditions of Central Excise  personnel are akin to the Defence Armed Force personnel, they are not compensated with any additional incentives or allowances, as in the case of Police/CBI/Army. Therefore 7th CPC is requested to  consider extending the grant of ‘ONE RANK ONE PENSION’ to the  executive officers of Central Excise Department.
8.5 As a measure of special recognition, is there a case to review the present benefits provided
to war widows?--------------
THE EXECUTIVE OFFICERS OF CENTRAL EXCISE DEPARTMENT ARE ENTITLED FOR ALL BENEFITS TO BE EXTENDED BY 7TH CPC TO DEFENCE PERSONNEL.
8.6 As a measure of special recognition, is there a case to review the present benefits provided
to disabled soldiers, commensurate to the nature of their disability?----------------
THE EXECUTIVE OFFICERS OF CENTRAL EXCISE DEPARTMENT ARE ENTITLED FOR ALL BENEFITS TO BE EXTENDED BY 7TH CPC TO DEFENCE PERSONNEL.
9. Allowances
9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that the number of allowances could be at a realistic level?---------------
The existing allowances need to be retained. They are at a realistic level having been evolved by successive Pay Commission over detailed deliberations. Whatever more benefits including extra one month salary granted to  personnel  of CBI/Army , that is required to be granted to the personnel of Central Excise Department who are performing more arduous and hazardous nature of work in comparison to other departments.  Salary means Gross Salary which is subject to Income Tax, hence all other  allowances (particularly  relating to actual  expenditure such as HR,Child Education, Transport allowances etc. )  other than salary  should be exempted from Income Tax. Otherwise a fixed percentage on salary should be allowed to all employees without asking any receipt/bills for reimbursement and to exempt from Income Tax.  It is required to sanction the  uniforms allowance  to executive officers of Central Excise department at par with Central Police Organisations.  For improvement in the House Building Advances  it is required to  reduce the rate of interest, One more chance is to be provided  to avail HBA who already taken earlier to improve the existing accommodation,  it is also required for allowing to avail HBA for extension, renovation of exiting own accommodations. Further , HBA  should be provided for purchasing resale flats/houses.
 

9.2 What should be the principles to determine payment of House Rent Allowance?---------------
 The house rent allowance will have to be the actual rent payable by an employee in a particular location and entire amount is to be  exempted from Income Tax.. It is required to abolish the license fee for the Departmental Quarters allotted to the employees since the HRA is recovering fully.
 
10. Pension

10.1 The retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?--------------
We are of the considered opinion that the new pension scheme which came into existence for the employees recruited after 1.1.2004 must be scrapped. It is required to revise the Gratuity equal to last drawn one month salary and to extend the gratuity to the employees joined after 01.1.2004..
 
10.2 As far as pre-1.1.2004 appointees are concerned, what should be the principles that govern the structure of pension and other retirement benefits?--------------------
The pay of every retired person must be re-determined notionally as if he is not retired and then his pension to be computed under the revised rules. The Central Government has decided to introduce  ONE RANK ONE PENSION’ to the three wings of the defence service personnel . The  Executive Officers of Central Excise and Customs Department are uniformed Officers and the Central Excise Department has  the same structural features, same command and control elements, serve under similar harsh service conditions, , as the army. In spite of the similarities in the duties performed by the Central Excise personnel but  they  are deprived of privileges extended to defence services and police services.  The command structure of Central Excise  is similar to the army, and so is its rank structure, except that the ranks in Central Excise  have different nomenclature ( Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst. Commissioner, Superintendent, Inspector ). The command and control system  Central  Excise  is also similar to the army . Under these conditions, when the juniors start getting more pension than the seniors, it violates the hierarchy of command system, as is applicable to all Armed Forces. It is a well establish dictum based on the Supreme Court judgement of 1982 and accepted by the Central Govt, that,” pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past services rendered”. In another judicial ruling, it has been stated that different criteria for grant of unequal pay / pension for the same rank on the basis of cut-off date of retirement violates Article 14 (equality before law) of the constitution. All pensioners irrespective of rank are entitled to same pension. In the case of defence services, the govt has, rightfully, realized the truth of this fact, and given succor to the pre-2006 defence pensioners to come up to the level of their post 2006 retirees of equivalent rank and status by granting them ‘One rank one Pension’. However, the personnel of Central Excise and Customs , who have equitable dispositions, command structure, rank system and nature of duties are grossly ignored, discriminated and forced to face the ignominy of far less emoluments vis-à-vis their juniors retiring post-2006.  The personnel of Central Excise and Customs  are deployed on the borders (with Pakistan, Bangladesh, Nepal, and Myanmar), International Airports and Sea Ports  and are  actively engaged in counter insurgency operations with smugglers and tax evaders etc within the country. These personnel  have suffered heavy casualties  while  dealing with trans-border crimes. There duties are akin to the army, which is also responsible for the guarding  Economics  borders of the Country, and are also  responsible for security of the nation. In fact, in J & K and in the North-eastern states of India, the Central excise personnel  are deployed side by side with the army, at times, on the same location. They perform their duties in most adverse conditions coupled with threat to their life either by enemy action, insurgents and the climatic hazards in high altitude, deprived of domestic life, which leads to deterioration of the physical and mental ability.  In spite of the fact that the service conditions of Central Excise  personnel are akin to the Defence Armed Force personnel, they are not compensated with any additional incentives or allowances, as in the case of Police/CBI/Army. Therefore 7th CPC is requested to  consider extending the grant of ‘ONE RANK ONE PENSION’ to the  executive officers of Central Excise Department.
Keeping in view the Socialistic structure of the country , constitutional provisions & to reduce vast inequality between have & have lots, it is proposed: The Ratio between maximum & minimum of  Pension be brought down to 6:1. Ensuring uniformly equal rise in Salary/Pension of all employees/pensioners, irrespective of pre- retiral status. By adopting common multiplication factor for revision of Pension/Pay, as raising the ratio between minimum & maximum of salary/pension to 1:12.85 by 6thCPC , instead of reducing it, was unconstitutional .In order to cater to the need of talent attraction in all cadres 7th pay commission is requested to first workout the top most revised salary/pension, divide it by 6 to arrive at the minimum revised salary & then derive a uniform multiplication factor by dividing minimum of revised Salary/Pension by minimum of pre-revised salary/Pension for revision of Pay & Pension with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay in Pay Band i.e. Pay in Pay Band+ GP /Pay scale or of average of last 10 months emoluments (Whichever is more beneficial) as was worked out & recommended by TECS (Tata Economic Consultancy Services) consultant to Vth CPC (Para 127.9 Vol III 5th CPC report)
One Rank one pension: ‘Justice must be equal for all’. Govt. granted One Rank One Pension (OROP) to Armed forces. One Rank one Pension to all retirees is constitutional requirement to ensure equality.
The Pension of Central Government Pensioners undergo revision only once in 10 years during which period the pension structure gets seriously dis-aligned; 50% increase in price takes place even in less than 5 years. This results in considerable erosion of the financial position of the pensioner. DR does not adequately take care of inflation at this level. Working employees are getting automatic relief by way of 25% increase in their allowances with every 50% rise in Dearness Allowance. As pensioners do not get any allowances, they feel discriminated against. In order to strike a balance, DR may be automatically merged with Pension whenever it goes to 50% .  5% upward enhancement in pension be granted every five years’ after the age of 60 years & up to 80 years & thereafter as per existing dispensation. As in the present scenario of climatic changes, incidence of pesticides and rising pollution old age disabilities/diseases set in by the time an employee retires and go on manifesting very fast, needing additional finances to take care of these disabilities and diseases, especially as the cost of health care has gone very high.  The purchase value of pension gets reduced day by day due to continuously high inflation and steep rise in cost of food items and medical facilities. Retired persons/Senior citizens do not enjoy fully public goods and services provided by Government for citizens due to lack of mobility and many other factors. Their ability to pay tax gets reduced from year to year after retirement due to ever-increasing expenditure on food and medicines and other incidentals. Their net worth at year end gets reduced considerably as compared to the beginning of the year. Inflation, for a pensioner is much more than any tax. It erodes the major part of the already inadequate pension. To enable pensioners, at the far end of their lives, to live in minimum comfort and to cater for ever rising cost of living, they may be spared from paying Income Tax.  Commutation value in respect of employee superannuating at the age of 60 years between 1.1.1996 and 31.12.2005 and commuting a portion of pension within a period of one year would be equal to 9.81 years Purchase. After adding thereto a further period of two years for recovery of interest, in terms of observation of Supreme Court in their judgment in writ petitions No 395-61 of 1983 decided in December 1986, it would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of persons superannuating at the age of 60 years after 31.12.2005 and seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also, the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986; the life expectancy stands at 76 years now. Therefore, restoration of commuted value of Pension after 12 years is fully justified.
 “Health is not a luxury” and “not be the sole possession of a privileged few”. It is a Fundamental Right of all present & past Employees!  To ensure hassle free health care facility to Pensioners/family pensioners, Smart Cards be issued irrespective of departments to all Pensioners and their Dependants for cashless medical facilities across the country. These smart cards should be valid in
• all Govt. hospitals
• all NABH accredited Multi Super Speciality hospitals across the country which have been allotted land at concessional rate or given any aid or concession by the Central or the State Govt.
• all CGHS, RELHS & ECHS empanelled hospitals across the country.
 No referral should be insisted in case of medical emergencies. For the purpose of reference for hospitalization & reimbursement of expenditure thereon in other than emergency cases Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should be recognized as Authorized medical attendant.  The enjoyment of the highest attainable standard of health is recognized as a fundamental right of all workers in terms of Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme Court 922) The Supreme court has held that the right to health to a worker is an integral facet of meaningful right to life to have not only a meaningful existence but also robust health and vigour. Therefore, the right to health, medical aid to protect the health and vigour of a worker while in service or post retirement is a fundamental right-to make life of a worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but is a Fundamental Right.
We suggest that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogenous group. There should be no class or category based discrimination and all must be provided Health care services at par . To ensure that the hospitals do not avoid providing reasonable care to smart card holders and other poor citizens, a Hospital Regulatory Authority should be created to bring all NABH-accredited hospitals and NABL-accredited diagnostic Labs under its constant monitoring of quality, rates for different procedures & timely bill payments by Govt. agencies and Insurance companies. CGHS rates be revised keeping in mind the workability and market conditions.  As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010) which discussed enhancement of FMA: CGHS card estimates for serving Personnel since estimates are not available separately for pensioners M/O Health & Family Welfare had assessed the total cost per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD. Adding to its inflation the figure today is well over Rs 2000/- PM. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs 2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, Adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through Insurance will cost much more to the Govt. As such the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable. We suggest that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM without any distance restriction linking it to Dearness Relief for automatic further increase. We further demand that FMA be exempted from INCOME TAX: Fixed Medical Allowance (FMA) is a compensatory allowance to reimburse the medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.
11. Strengthening the public governance system
11.1 The 6th CPC recommended upgrading the skills of the Group D employees and placing  them in Group C over a period of time. What has been the experience in this regard?---
No Comment.
11.2 In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to:
a) Rationalisation of staff strength and more productive deployment of available staff;
b) Rationalisation of processes and reduction of paper work; and
c) Economy in expenditure.-------------------
In our considered opinion, the 7thCPC must recommend to the Government to set up a Committee in each department with experts from outside the organization, the officials from within the organization and representative of the Unions of the respective department to study the functional changes taken place over the years, especially due to the induction of modern technology the new challenges and the best way to meet those challenges’ reduction in paper work, customer satisfaction and economy in expenditure and make suggestions to the Government for their acceptance and implementation in toto.
12. Training! building competence To ensure that periodical professional training is imparted to all personnel to update the skills.--------------------
 Meditation cultivates the discipline of sefless attention and allows people to see the bigger picture. Meditation creates a short-term state change and a longer-term trait change. Hence staffs should be encouraged to use meditation apps.
12.1 How would you interpret the concept of “competency based framework”?
Target is required to be  fixed reasonable.
12.2 One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework.
a) Is the present level of training at various stages of a person’s career considered adequate?
Are there gaps that need to be filled, and if so, where?
b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated?
c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened?-------------
Gr-B gazetted officers should be provided professional education in reputed educational institutions.
13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?-----------------
All ministerial and supporting works may be outsourcing.
13.2 Is there a clear identification of jobs that can be outsourced?------------------------
Yes as stated vide para13.1.
14. Regulatory Bodies
No comments.
14.1 Kindly list out the Regulators set up under Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated.---------------
No comments.
14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated.-----------------
No comments.
14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies?----------------
No comments.
15. Payment of Bonus.--------------------------------------
 Bonus should be granted to all Gazetted officers  also like other Central government Employees. Almost all  1.6 million civilian full-time federal employees of USA received merit bonuses or special time-off awards. The typical bonus amounted to 1.6 percent of salary.  This system is  evidence of a talented workforce that performs admirably, and often at salary levels inferior to those of the private sector.
Under civil service laws of USA, federal agencies can hand out cash awards or additional time off to reward employees for good annual performance or contributions on specific projects. The law allows for multiple awards throughout the year, and all civil servants are eligible. Apart from merit bonus annual   Bonuses are  divided up equally across all employees. Bonus is nothing but considered as salary as the same is subject to Income Tax..  8.33% of the Gross salary should be considered  as Bonus duly removing  of ceiling on Bonus.