Completion of four years in Grade Pay 4800 entitles officers to non-functional Grade Pay of 5400.

The applicants are Superintendents in the Department of Central GST and Customs

Based on the 6th Central Pay Commission recommendations, they were initially granted a Non-Functional Grade (NFG) in the Grade Pay (GP) of Rs. 5400/- (PB-2) effective from 30.12.2006

Subsequently, through impugned orders dated 28.06.2013 and 30.07.2015, the respondents withdrew this GP and initiated recovery of alleged excess payments without a show-cause notice

The applicants’ earlier challenge (O.A. 130/2016) resulted in a direction to the respondents to verify if the applicants were similarly situated to those in M. Subramaniam v. U.O.I

However, the respondents issued a speaking order dated 31.10.2016, denying the benefit on the grounds that the applicants had already received financial upgradations under the ACP/MACP schemes in PB-3 with GP Rs. 5400/- and Rs. 6600/-

1. Whether the applicants are entitled to the Grade Pay of Rs. 5400/- in PB-2 on a non-functional basis upon completion of four years of regular service in the Grade Pay of Rs. 4800/-

2. Whether the grant of ACP/MACP benefits precludes the entitlement to NFG pay scales as per the law established in the Subramaniam case

The court primarily relied on the judgment of the Hon’ble Madras High Court in M. Subramaniam v. U.O.I & Ors (W.P. No. 13225 of 2010), which directed the extension of GP Rs. 5400/- to officers completing four years of regular service in GP Rs. 4800/-

This principle was affirmed by the Hon’ble Supreme Court in Civil Appeal No. 8883 of 2011 and subsequent review petitions

The Tribunal also referred to the CAT Ernakulam Bench decision in O.A. No. 304/2012, which held that NFG cannot be treated as a promotion for MACP purposes

Finally, the court applied the Department of Revenue/CBIC Circular dated 27.04.2022, which mandated the implementation of the Subramaniam verdict for all similarly situated employees

The Tribunal observed that the legal controversy regarding the grant of NFG GP Rs. 5400/- has attained finality

The court noted that the respondents themselves issued a Circular on 27.04.2022, acknowledging that the benefit of GP Rs. 5400/- in PB-2 should be extended to Inspectors/Superintendents who have completed four years of regular service in the GP of Rs. 4800/-, even if that GP was attained via ACP/MACP

The Tribunal reasoned that since the Ministry of Finance had already advised the implementation of the Subramaniam case for all similarly situated applicants, the applicants in the present case were entitled to a fresh verification of their claims under the revised policy

The respondents’ counsel did not object to this verification process

The respondents are ordered to pass a reasoned and speaking order regarding the grant of NFG and potential re-fixation of pay within three months of receiving the certified copy of the order

No order was made as to costs