CAT - ['Allahabad']

Notional Promotion Counted as Regular Service for MACP and NFSG Entitlements

Shailendra Kumar shukla and other vs DIRECTORATE OF REVENUE INTELLIGENCE

CAT - ['Allahabad']JUDGMENT: May 18, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants were initially appointed as Lower Division Clerks (LDCs) and subsequently promoted to Upper Division Clerks (UDCs), which was the feeder cadre for promotion to Inspector under the Central Excise and Land Customs Department Group 'C' Posts Recruitment Rules, 1979.

Source reference: p.4

Due to Cadre Restructuring – 2001, significant vacancies arose in the Inspector cadre prior to December 7, 2002.

Source reference: p.4

Review DPCs in 2011-2012 promoted the applicants to Inspector on a regular basis, effective from July 1, 2001, against regular vacancies, and their pay was fixed under FR 22(1)(a)(i) from this date.

Source reference: p.4

The Apex Court in D. Raghu v. R. Basaveswarudu (CA No. 1970 -75/2009) protected promotions made against vacancies arising before December 7, 2002, citing the passage of time.

Source reference: p.5

The respondents denied or withheld MACP and consequential NFSG benefits citing clarificatory letters dated February 7, 2018, and July 14, 2021, arguing service was not "regular service" for MACP purposes.

Source reference: p.6

Applicant 4's representation dated April 24, 2024, regarding the incorrect MACP date and consequential NFSG benefit remains undecided.

Source reference: p.11
02

Issues

1. Whether the promotions granted to the applicants on or prior to December 6, 2002, which were protected by the Hon'ble Apex Court in CA No. 1970 -75/2009 vide order dated February 5, 2020, have attained finality and cannot be disturbed, thereby entitling the applicants to all consequential benefits.

Source reference: p.2

2. Whether the applicants' situation is unaffected by the provisions of the MACP Scheme referred to in the impugned letters/orders dated February 7, 2018, and July 14, 2021.

Source reference: p.2
03

Law Applied

Central Excise and Land Customs Department Group 'C' Posts Recruitment Rules, 1979.

Source reference: p.4

Modified Assured Career Progression (MACP) Scheme regarding "regular service" requirements.

Source reference: p.6

The doctrine of protection of promotions as established in D. Raghu v. R. Basaveswarudu, (2020) 18 SCC 1, Para 119(22).

Source reference: p.5

Fundamental Rule 22(1)(a)(i) regarding pay fixation upon promotion.

Source reference: p.4
04

Reasoning

The court noted that the regular promotions of the applicants effective from July 1, 2001, were specifically protected by the Apex Court's mandate in the D. Raghu case.

Source reference: p.5

The Tribunal observed that clarificatory letters dated February 7, 2018, and July 14, 2021, used to deny benefits, had already been quashed in O.A. No. 717/2024 for similarly situated employees.

Source reference: p.6-7

The court recognized that since the applicants were treated as regular Inspectors for seniority and pay fixation since 2001, such service must be counted as "regular service" for the purpose of MACP and subsequent NFSG entitlements.

Source reference: p.5-6
05

Holding

The promotions granted and protected by the Apex Court have attained finality and the service rendered thereafter counts as regular service for all consequential benefits.

The respondents were directed to decide the pending representation of applicant 4 and extend the benefits of MACP and NFSG based on the regular service effective from the date of initial promotion.

Source reference: p.11
CAT - ['Allahabad']

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Shailendra Kumar shukla and othervsDIRECTORATE OF REVENUE INTELLIGENCE

CAT - ['Allahabad'] · May 18, 2026

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