Upgraded pay scales apply notionally from 01.01.1996 to ensure parity among similarly situated revenue officials.

The applicants are Inspectors and Superintendents in the Central Excise and Customs Department who served between 01.01.1996 and 21.04.2004

Following the 5th Central Pay Commission (CPC), the pay scales for Inspectors and Superintendents were revised to Rs. 6500–10500 and Rs. 7500–12000, respectively.

However, the government made these revised scales effective from 21.04.2004 instead of the 5th CPC commencement date of 01.01.1996

The applicants sought retrospective notional fixation from 01.01.1996 based on favorable decisions by other Tribunal Benches (Hyderabad, Jaipur, Kolkata) and High Courts, which were affirmed by the Supreme Court

The respondents opposed the application on grounds of limitation, characterizing the applicants as "fence-sitters" who approached the Tribunal after significant delay

1. Whether the applicants are entitled to the benefit of notional pay fixation with effect from 01.01.1996 and consequential monetary benefits from 21.04.2004

2. Whether the Original Application is barred by limitation and the doctrine of "fence-sitters" due to the delay in filing

3. Whether the prior judicial pronouncements on this subject matter operate in rem or in personam

Central Civil Services (Revised Pay) Rules, 1997, and Article 14 of the Constitution of India regarding the principle of equality and non-discrimination

State of Karnataka v. C. Lalitha, which establishes that similarly situated persons in service jurisprudence should be treated similarly and that benefits granted to one set of employees must extend to others

K.C. Sharma v. Union of India regarding the relaxation of limitation in cases of clear parity

the principle that pay fixation constitutes a recurring cause of action

The Tribunal observed that both the CBDT and CBIC function under the Department of Revenue; since a Special Anomaly Committee had already recommended and implemented retrospective fixation from 01.01.1996 for CBDT employees, denying the same to CBIC employees was discriminatory

Regarding limitation, the Tribunal rejected the "fence-sitter" argument, noting that the Special Anomaly Committee's report was only finalized in late 2023 following High Court directions, and the Department had already implemented similar orders for over 1,500 employees across India

The Tribunal reasoned that since the core issue was the rectification of a pay anomaly, the judgment of the Hyderabad Bench (upheld by the Supreme Court) operated in rem.

the respondents, as a "model employer," should have extended the benefits to all similarly situated employees without forcing individual litigation

It held that the applicants are entitled to the revised pay scales on a notional basis from 01.01.1996 and on an actual monetary basis from 21.04.2004

The respondents were directed to refix the applicants' pay in the grades of Inspector and Superintendent, grant consequential arrears, and update pensionary benefits accordingly within two months

No order as to costs was made