Two Central Excise Employees Get Notional Pay Fixation From 1996, With Actual Benefits From 2004: CAT-vesm

The applicants, employees of the Central Excise/Customs departments, sought revised pay scales for Inspectors and Superintendents from 1 January 1996, together with consequential benefits.

They contended that the relevant revised scales had been made financially effective only from 21 April 2004, although the Fifth Central Pay Commission’s recommendations took effect from 1 January 1996, and that their representation seeking the earlier benefit remained pending.

They relied on Tribunal decisions concerning the same issue, including decisions affirmed by the relevant High Courts and the Supreme Court, as well as orders of the Chennai Bench in similar cases.

The Tribunal heard the applications together because their subject matter, facts and relief sought were identical.

The Tribunal directed refixation in accordance with the Central Civil Services (Revised Pay) Rules, 1997.

It applied the principle in prior Tribunal decisions that the revised pay scales were to be given effect notionally from 1 January 1996, while actual monetary benefits were payable from 21 April 2004.

In particular, it relied on the Hyderabad Bench’s decision in O.A. No. 1089/2019, which was upheld by the Telangana High Court and the Supreme Court, and on the Chennai Bench’s orders in O.A. Nos. 274/2025, 795/2025 and 811/2025.

The Tribunal considered the issue covered by the cited decisions, including the Hyderabad Bench decision affirmed by the High Court and Supreme Court.

It also noted that the Chennai Bench had granted similar relief in earlier applications and that those orders had been implemented.

Applying that consistent approach, it directed notional pay refixation from 1 January 1996 and actual monetary benefits from 21 April 2004, rather than granting actual arrears from 1 January 1996.

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