Retired Central Excise Officer Gets Notional Pay Revision From 1996, Actual Monetary Benefits From April 21, 2004: CAT Chennai

In brief

The question

Whether the applicant was entitled to notional fixation of pay in the revised scales from 1 January 1996.

The court held

The Tribunal allowed the claim to the extent of directing the respondents to refix the applicant’s pay under the CCS (Revised Pay) Rules, 1997, on a notional basis from 1 January 1996 and on an actual monetary basis from 21 April 2004, with consequential benefits, including pensionary benefits.

It also directed

The exercise was to be completed within two months of receipt of the order.

The OA was disposed of at the admission stage.

01Facts

The applicant joined the Central Excise Department as an Inspector on 10 June 1982, was promoted as Superintendent on 31 July 2002, and retired on 31 July 2017.

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The Fifth Central Pay Commission recommended revised scales of ₹6,500–10,500 for Inspectors and ₹7,500–12,000 for Superintendents, but the Department made the revised scales effective from 21 April 2004 rather than 1 January 1996.

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The applicant sought the revised scales from 1 January 1996 and consequential service and pensionary benefits, relying on decisions of other Tribunal Benches and courts.

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The Tribunal noted decisions of the Hyderabad Bench, upheld by the Telangana High Court and the Supreme Court, as well as similar orders of the Jaipur Bench and the Chennai Bench.

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02Issues

i.Whether the applicant was entitled to notional fixation of pay in the revised scales from 1 January 1996.

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ii.Whether the applicant’s actual monetary benefits were payable from 1 January 1996 or only from 21 April 2004, with consequential benefits.

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03Law Applied

The Tribunal applied the Central Civil Services (Revised Pay) Rules, 1997, as the basis for refixing the applicant’s pay.

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It relied on the Hyderabad Bench’s decision directing notional enhanced pay from 1 January 1996 and actual monetary benefits from 21 April 2004, which had been affirmed by the Telangana High Court and upheld by the Supreme Court.

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It also noted the Jaipur Bench decision, subsequently affirmed by the Rajasthan High Court and the Supreme Court, and its own earlier orders in similar matters.

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The resulting rule applied was that the revised pay was to be fixed notionally from 1 January 1996, while actual monetary benefits were payable from 21 April 2004.

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04Reasoning

The Tribunal considered the issue covered by the Hyderabad Bench decision and the subsequent affirming decisions of the High Court and Supreme Court.

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It also relied on its own recent orders granting similar relief, which the Department had implemented.

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Applying those decisions to the applicant’s claim, the Tribunal directed notional refixation from 1 January 1996 and actual monetary benefits from 21 April 2004.

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