Upgraded pay scales apply notionally from 1 January 1996 and actually from 21 April 2004, with arrears.

The 25 applicants, comprising retired and serving officers of the Central Tax and Customs Departments, challenged the communication dated 25 July 2023 issued by the Ministry of Finance and the consequential communication dated 4 September 2023 issued by the Principal Chief Commissioner of Central Tax, Bengaluru Zone.

These communications apparently denied or restricted the benefit of upgraded pay scales granted under the Office Memorandum dated 21 April 2004.

The applicants sought implementation of the revised pay scales notionally from 1 January 1996, the date of implementation of the Fifth Central Pay Commission recommendations, and payment of consequential arrears with interest.

The application was filed under Section 19 of the Administrative Tribunals Act, 1985.

The Tribunal noted that the issue had already been considered in OAs Nos. 94/2024, 265/2024, 410/2024, 411/2024 and 663/2024, and that the Karnataka High Court had subsequently decided the connected issue in W.P. No. 32729/2025, Shri A. Panduranga Naik & Ors. v. Union of India & Ors., decided on 22 July 2026.

Whether the applicants were entitled to the benefit of the upgraded pay scales granted under the Office Memorandum dated 21 April 2004 with effect from 1 January 1996 on a notional basis and from 21 April 2004 on an actual basis.

Whether the communication dated 25 July 2023 and the consequential communications restricting or denying the applicants’ pay-scale benefits were liable to be quashed.

Whether the applicants were entitled to arrears and consequential benefits from 21 April 2004, rather than merely for a limited period preceding the filing of their applications.

The Tribunal exercised jurisdiction under Section 19 of the Administrative Tribunals Act, 1985, concerning service-related claims.

It applied the terms and effect of the Office Memorandum dated 21 April 2004, which granted upgraded pay scales, and directed that the benefit be given notionally from 1 January 1996 and actually from 21 April 2004.

The Tribunal followed its earlier orders in OAs Nos. 94/2024, 265/2024, 410/2024, 411/2024 and 663/2024, and the Karnataka High Court’s decision in Shri A. Panduranga Naik & Ors. v. Union of India & Ors., W.P. No. 32729/2025 and connected matters, dated 22 July 2026, which had set aside the restriction limiting actual arrears to three years preceding the filing of the OAs and recognised entitlement to arrears from 21 April 2004.

The Tribunal found that the governing issue was no longer res integra, as the same entitlement had already been determined in the earlier Tribunal decisions and in the Karnataka High Court judgment.

Since both parties had no objection to disposal of the application on identical terms, the Tribunal adopted the existing legal position rather than reconsidering the issue independently.

Applying the Office Memorandum dated 21 April 2004, it held that the upgraded pay scales had to operate notionally from 1 January 1996, while the monetary benefits and actual implementation would run from 21 April 2004.

In accordance with the High Court’s ruling, the Tribunal further rejected any limitation of arrears to only three years before the filing of the OAs and granted arrears from 21 April 2004.

The communication dated 25 July 2023, as communicated by the competent authorities, was set aside.

The respondents were directed to extend the upgraded pay scales under the Office Memorandum dated 21 April 2004 notionally from 1 January 1996 and actually from 21 April 2004.

The applicants were also granted arrears and consequential benefits arising from the revised pay with effect from 21 April 2004, with liberty to pursue similar benefits if the respondents extended them to other similarly situated employees from 1 January 1996.

Compliance was directed within 12 weeks from receipt of the certified copy of the order, with no order as to costs.