Facts
The applicants, retired as Assistant Commissioner, Superintendent, and Inspector, joined the respondent department in various posts.
Source reference: no citationThe 4th Pay Commission granted Superintendents/Inspectors a pay scale of Rs. 2000-3500/- and Rs.1640-2900/- respectively.
Source reference: para. 3The 5th Pay Commission recommended a pay scale of Rs. 6500-10500/- for Superintendents and Rs. 5500-9000/- for Inspectors, effective from 01.01.1996.
Source reference: para. 3Due to anomalies, Respondent No. 1 revised the pay scales for both CBDT (Income Tax) CBCE (Excise and Custom) cadres via OM dated 21.04.2004 (Annexure A-1) to Rs. 7500-12000/- for Superintendents and Rs. 6500-10500/- for Inspectors, explicitly stating the revised scale would take effect from 21.04.2004.
Source reference: para. 3The applicants' claim is that this order should be given retrospective effect from 01.01.1996 instead of prospective effect.
Source reference: p.3-4, para. 5Issues
Whether the OM dated 21.04.2004, which granted upgraded pay scales, should be quashed to the extent it provides immediate effect instead of retrospective effect from 01.01.1996.
Source reference: p.2, para. 1Whether the applicants are entitled to the benefit of upgraded pay scales notionally from 01.01.1996 and actually from 21.04.2004.
Source reference: p.4, para. 6(ii)Whether the applicants are entitled to consequential benefits of fixation of pay/pension and arrears based on notional fixation from 01.01.1996.
Source reference: p.4, para. 6(iii)Law Applied
The Tribunal applied the principle of judicial precedent, specifically relying on its previous judgment in O.A No. 207/2022 dated 11.12.2024, which decided a similar issue by quashing OM dated 21.04.2004 to the extent it did not grant retrospective effect to upgraded pay scales.
Source reference: p.4, para. 6This previous order, which granted notional benefit from 01.01.1996 and actual payment from 21.04.2004, was upheld by the Hon'ble Punjab and Haryana High Court on 16.10.2025.
Source reference: p.4-5, para. 6Reasoning
The Tribunal found that the core issue in the present application, concerning the retrospective application of the upgraded pay scales, had been previously adjudicated upon in a bunch of similar cases.
Source reference: no citationThe earlier judgment in O.A No. 207/2022, dated 11.12.2024, directly addressed the validity of OM dated 21.04.2004, deeming it invalid for not granting retrospective effect from 01.01.1996.
Source reference: p.4, para. 6That decision, which allowed for notional fixation from 01.01.1996 and actual payment from 21.04.2004, has been upheld by the Punjab and Haryana High Court and implemented by the respondents.
Source reference: p.4-5, para. 6Given the identical nature of the legal question and the binding precedent, the Tribunal determined that the applicants were similarly situated and warranted the same relief.
Source reference: p.5, para. 7Holding
The OA is disposed of.
The respondents are directed to examine the applicants' claim and, if they are found to be similarly situated, grant them the same relief as granted in O.A No. 207/2022.
Source reference: p.5, para. 7This includes quashing the OM dated 21.04.2004 to the extent it grants graded pay scales with immediate effect, and directing that the applicants are entitled to upgraded pay scales notionally from 01.01.1996 and actually from 21.04.2004, along with consequential benefits of fixation of pay/pension and arrears.
Source reference: p.5, para. 7This process is to be completed within three months from the date of receipt of this order.
Source reference: p.5, para. 7Original Court PDF
Ravinder Kumar Malhotra & Others v. Union of India & Others, OA 60/168/2026
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