Entitlement to Non-Functional Grade Pay of ₹5400 follows automatically after four years of regular service in Grade Pay ₹4800.

The applicants (43 individuals), primarily serving as Inspectors in the CGST, Customs, and Central Excise departments, filed an Original Application seeking the grant of Non-Functional Selection Grade (NFSG) with a Grade Pay of Rs. 5400/- in Pay Band-2

They claimed entitlement to this grade from the dates they completed four years of regular service in the Grade Pay of Rs. 4800/-

The applicants asserted that they had submitted representations to the respondents which remained undecided, and that several other Benches of the Tribunal and High Courts had already granted similar relief to similarly situated employees

The respondents requested additional time to seek instructions, which the Tribunal noted had been previously granted without result

1. Whether the applicants are entitled to the Non-Functional Selection Grade (NFSG) pay scale of Rs. 5400/- in PB-2 upon completion of four years of regular service in the Grade Pay of Rs. 4800/-

2. Whether the present case is squarely covered by the precedent set in M. Subramaniam v. Union of India and subsequent orders of the Tribunal

The court primarily relied on the legal principle established by the Hon’ble Madras High Court in M. Subramaniam Others v. Union of India (Writ Petition No. 13225 of 2010), which held that officers completing four years of regular service in the Grade Pay of Rs. 4800/- are entitled to the Non-Functional Grade Pay of Rs. 5400/-

This principle was affirmed by the Hon’ble Supreme Court and subsequently adopted by the Central Administrative Tribunal, Allahabad Bench, in O.A. No. 392 of 2026

The court applied the "doctrine of parity," ensuring that similarly situated employees receive equal treatment under the law

The Tribunal examined the applicants' claim against the backdrop of established judicial precedents. It observed that the controversy regarding the grant of NFSG of Rs. 5400/- was no longer res integra (an undecided point of law), as it had been finalized by the Madras High Court and upheld by the Supreme Court

The Bench noted that the respondents failed to provide instructions despite multiple opportunities, and the facts presented by the applicants remained uncontroverted

Applying the rule of law to the facts, the Tribunal found that the applicants were in an identical position to those in O.A. No. 392 of 2026 and M. Subramaniam

Consequently, the Tribunal reasoned that the applicants must be extended the same benefits mutatis mutandis to maintain judicial consistency and administrative fairness

The Original Application was disposed of at the admission stage with a direction to the respondents to decide on the applicants' representations within eight weeks. If found eligible, the respondents must grant the Grade Pay of Rs. 5400/- in PB-2 along with all consequential benefits and arrears in accordance with law