Central Administrative Tribunal - Mumbai
A B Mangarulkar vs M/O Finance on 24 February, 2026
1 OA.247/2018
CENTRAL ADMINISTRATIVE TRIBUNAL,
MUMBAI BENCH, MUMBAI.
O.A.No.247/2018
Dated this Tuesday the 24th day of February, 2026.
Coram: Hon'ble Mr.Shri Krishna, Member (Administrative)
Hon'ble Mr.Umesh Gajankush, Member (Judicial)
Shri A.B. Mangarulkar,
Residing at Flat #10 Manas Co-op Housing Society,
Left Bhusari Colony, Kothrud, Pune - 411 038.
(Presently working as Assistant Commissioner,
GST Audit-I Commissionerate Pune). ..Applicant.
( In Person ).
Versus
1. The Union of India, through
Secretary (Revenue),
Ministry of Finance, Department of Revenue,
North Block, New Delhi - 110 001.
2. The Chairman,
Central Board of Excise & Customs,
North Block, New Delhi - 110 001.
Digitally signed by Hemant Anant Mahabal
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone=
0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode=
400602, S=Maharashtra, SERIALNUMBER=
44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant
Mahabal
Mahabal
Reason: I am the author of this document
Location:
Date: 2026.03.06 13:05:28+05'30'
Foxit PDF Reader Version: 2024.4.0
3. The Secretary,
Department of Personnel & Training,
North Block, New Delhi - 110 001.
4. The Principal Chief Commissioner of GST & C. Excise,
Mumbai Zone, GST Bhavan,
115 M.K. Road, Mumbai - 400 020.
2 OA.247/2018
5. The Commissioner of GST, Audit I,
GST Bhavan, 41/A Sassoon Road,
Pune - 411 001.
6. Pay and Accounts Officer Pune, (CBEC),
GST Bhavan, 41/A Sassoon Road,
Pune - 411 001. .. Respondents.
( By Advocate Shri D.A. Dube ).
Order reserved on : 18.12.2025
Order pronounced on : 24.02.2026
ORDER
Per : Shri Krishna, Member (A)
The applicant has filed this OA under Section 19 of the Administrative Tribunals Act, 1985 to claim for the following reliefs:-
"8.1(a) That the Hon'ble Tribunal may be pleased to call for the records from the Respondent No.2, which made them change the clarification dated 26.05.2015 and also call for the legal basis for issue the clarification dated 20.06.2016.
Digitally signed by Hemant Anant Mahabal 8.1(b) That the Hon'ble Tribunal may be pleased to ask Hemant Anant the Respondent No.3 i.e. DoPT to clarify as to whether any DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 factual situation has undergone any material change since the clarification issued by them on 05.05.2015 with reference to case of Shri R. Chandrashekaran that has made them to issue fresh advice resulting in issue of clarification dated 20.06.2016 by Respondent No.2.
8.1(c) That the Hon'ble Tribunal may be pleased to ask / call for the records from the Respondent No.4, that had 3 OA.247/2018 made them to issue the corrigendum under F.No.II/39 (COM) MACPS-4/2013 dated 25.09.2014 to the Estt. Order No.18/2013 dated 21.01.2013, under which the benefit granted with G.P. of Rs.6600/- under 3rd MACPS to the Applicant vide Estt. Order No.18/2013 dated 21.01.2013 was withdrawn and legal basis therefor.
8.1(d) That the Hon'ble Tribunal may be pleased to ask / call for the records from the Jurisdictional Commissioner i.e. Respondent No.5 who was made to issue Pay Fixation Order dated 08.12.2016, reducing the G.P. when the issue had already reached finality in case of Shri S. Balkrishanan cited above and legal basis for issue of Pay Fixation Order, reducing the G.P. from Rs. 6600/- to Rs. 5400/-.
8.2. That the Hon'ble Tribunal may be pleased to hold and declare that the Applicant (having received only one promotion and 2nd ACP prior to 01.09.2008 and since issue had already reached finality in case of Shri S. Balkrishanan cited above and the Applicant happens to be a similarly placed officer like Shri S. Balkrishanan) is entitled to 3rd financial upgradation under MACP with G.P. of Rs.6600/- in P.B.-3 on completion of 30 years of service.
8.3. That the Hon'ble Tribunal may be pleased to quash and set aside the corrigendum dated 25.09.2014 issued by Respondent No.4, and the impugned Clarification dated 20.06.2016 issued by respondent No.2 and consequently the pay fixation orders dated 08.12.2016 and 13.01.2017 by the jurisdictional Commissioner, i.e. Respondent No.5 with the directions to revise the Pay Hemant Anant Mahabal Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Reason: I am the author of this document Location:
Fixation Order dated 08.12.2016 with G.P. of Rs.6600/- in P.B.-3 and also to revise the Pay Fixation Order dated Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 13.01.2017.
8.4. That the Hon'ble Tribunal may be pleased to quash the letter from Respondent No.4 i.e. the Principal Chief Commissioner, CGST & Central Excise, Mumbai Zone (Cadre Controlling Authority) issued under F. No.II/39 (CON) MACPS-Misc/06/2017/21 dated 11.01.2018, rejecting the 4 OA.247/2018 Applicant's request to restore the Grade Pay to Rs.6600/-
with consequential relief.
8.5. That the Hon'ble Tribunal may be pleased to direct all the respondents to ensure that the financial benefits of 3rd upgradation are made available to the Applicant with G.P. of Rs.6600/- w.e.f. 03.08.2012, in view of judicially settled law, with consequential relief, including post retirement benefits, with interest thereon @ 18% p.a. 8.6. That the Hon'ble Tribunal may be pleased to direct Respondent No.5 to issue a revised pay fixation order and moreover Respondent No.5 be restrained from effecting any recovery in terms of Pay Fixation Order dated 08.12.2016 and so also suitably revise Pay fixation order under F.NO.III/Acctts-45/Pay-Fx/Gr.A/2016-17 dated 13.01.2017 and the resultant arrears be paid along with interest thereon @ 18% p.a. 8.7. That the Hon'ble Tribunal may be pleased to grant any other just and equitable relief in the interest of justice to which the Applicant is found entitled.
8.8. That the Hon'ble Tribunal may be pleased to award the cost of the original application."
2. Brief facts of the case are that the applicant was appointed as direct recruit Inspector of Central Excise and Customs on 03.08.1982 and granted 1st ACP on 09.08.1999. He got promoted Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
in the year 2001 to the post of Supdt., Central Excise Group-B and Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 was granted 2nd ACP with effect from 03.08.2006 in the pay scale of Rs.8000-275-13500 as per Ministry's Office Order No.02/2008 dated 22.04.2008 on completion of 24 years of service. His pay 5 OA.247/2018 was revised in the year 2008 due to 6th CPC and fixed in the Grade Pay of Rs.4800/- in PB-2 and was further granted Grade Pay of Rs.5400/- on ACP with effect from 03.08.2006. 2.1. It has been submitted that in pursuance of 6th CPC to maintain parity amongst similarly placed officers from various departments and as per CBEC's Circular dated 16.09.2009, the applicant was granted Grade Pay of Rs.5400/- in the PB-2 with effect from 01.01.2006, having completed requisite four years of service in the grade of Superintendent. Thereafter, the CBEC issue clarification dated 29.09.2009 clarifying entitlement of Grade Pay of Rs.6600/- to the Superintendents, who were granted the 2nd financial upgradation to the pay scale of Assistant Commissioner (JTS) in the pre-revised scale of Rs.8000-275-
13500 under the ACP Scheme vide letter dated 02.02.2010.
However, the respondent no.2 vide letter 20.05.2011 clarified entitlement of Grade Pay of Rs.5400/- in the PB-3 to the cadre of Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Superintendent who were allowed 2nd financial upgradation under Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 ACP upto 31.08.2008.
2.2. It has been submitted that the respondent no.4 vide Estt.
Order dated 21.01.2013 granted the benefit of 3rd MACP to the 6 OA.247/2018 applicant with Grade Pay of Rs.6600/- with effect from 03.08.2012 along with other similarly placed officers. However, the respondent no.4 vide Estt. Order No.18/2013 dated 25.09.2014 withdrew the benefit of 3rd MACP granted to the applicant as he was granted NFSG before grant of 2nd ACP benefits. However, the said corrigendum was kept in abeyance as the respondent no.4 issued letter dated 12.05.2015 to the ACAO Pune-I stating that the corrigendum dated 25.09.2014 has been kept in abeyance.
2.3. It has been submitted that respondent no.2 i.e. CBEC on the directions of Hon'ble High Court of Madras vide judgment dated 08.12.2014 in WP No.10924/2014 in case of Shri R. Chandrasekaran issued a clarification dated 26.05.2015, enclosing the opinion of the DoP&T vide their noting dated 05.05.2015, clarifying that Shri R. Chandrasekaran is entitled to grant of 3rd ACP in the Grade Pay of Rs.6600/- under MACP Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Scheme with effect from 04.06.2012 on completion of 30 years of Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 service.
2.4. The respondent No.2 issued clarification dated 20.06.2016 stating that grant of non-functional grade pay of Rs.5400/- in PB- 7 OA.247/2018 2 to the Supdts. needs to be counted as one financial up-gradation for the purpose of MACP Scheme and stated that DoPT has drawn attention to the specific provision in Para 8.1 of Annexure-I of OM dated 19.05.2009. The DoPT has also advised that court cases including the case of Rs. Chandrasekaran may be agitated / defended as per the MACP Scheme vide DoPT OM dated 19.05.2009.
2.5. It has been submitted that the applicant made representation dated 25.07.2016 to respondent no.2 stating that clarification dated 20.06.2016 by CBEC is illegal and having no judicial backing and requested not to reduce the Grade Pay of Rs.6600/- and if at all the respondent is going to reduce the Grade Pay, the applicant may be provided with a speaking order.
Thereafter, the applicant made a representation dated 20.09.2016 not to reduce his Grade Pay. However, the respondent No.5 vide order dated 08.12.2016, reduced applicant's Grade Pay to Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Rs.5400/- from Grade Pay of Rs.6600/- with effect from Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 03.08.2012 and subsequently vide order dated 13.01.2017 made it effective from 01.01.2016.8 OA.247/2018
2.6. It has been submitted that the applicant made a representation dated 08.06.2017 to Respondent No.5, surrendering the Non-Functional Upgradation granted on 01.01.2016 with reserving the right on NFU benefit, if found to be otherwise admissible, requesting to fix the pay afresh. The same was followed by another representation dated 11.07.2017.
Subsequently, the applicant made another representation dated 30.10.2017 to Respondent No.5 requesting to restore the Grade Pay of Rs.6600/- with all consequential benefits in view of the fact that the order of the Hon'ble High Court, Madras dated 16.10.2014 in WP No.11535/2014 which was accepted and implemented by the respondents therein, followed by another representation 28.12.2017.
2.7. It has been further submitted that in response to applicant's representation dated 08.06.2017, the respondent no.4 vide their reply dated 05.01.2018 informed the applicant that Ministry's letter Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
dated 16.09.2009 and 29.08.2008 do not provide for any provision Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 for giving option nor were the options of the officers called for before implementing the said grant and hence the request of the officers cannot be acceded to. In response to applicant's 9 OA.247/2018 representation dated 30.10.2017, the respondent no.4 vide letter dated 25.01.2018 replied that in the light of DoPTs OM dated 26.07.2010, the NFSG granted during 01.01.2006 to 31.08.2008 would be counted / offset against the financial upgradation under MACPS and the applicant is not eligible for grant of any further financial upgradation under the MACPS.
Aggrieved by the above action of the respondents, the applicant has filed this O.A. seeking reliefs stated in Para 8 of the O.A.
3. After issuance of the notice, the respondents have filed their reply and contested the O.A. 3.1. It has been submitted that the applicant had joined the department on 03.08.1982 as Inspector and was promoted to the grade of Superintendent on 31.03.2001. Since the applicant had not been granted any promotion on completion of 12 years of regular service in the grade of Inspector, the officer was Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document considered for grant of 1st financial upgradation under the Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 erstwhile ACP Scheme w.e.f. 09.08.1999. Since the applicant had completed 24 years of service as on 03.08.2006, the officer was granted 2nd ACP benefits i.e. he was granted the grade pay of 10 OA.247/2018 Rs.8000-275-13500 w.e.f. 03.08.2006 vide Office Order No.02/2008 dated 22.04.2008. The 6th CPC recommendations were implemented vide Notification dated 29.08.2008 with retrospective effect from 01.01.2006. As per its recommendations, Superintendents in the Department of Revenue with four years of regular service in the grade were eligible for NFG in the grade pay of Rs.5400/- in PB-2 in the corresponding Pay Band w.e.f. 01.01.2006. Accordingly, the applicant on completion of 4 years in the grade of Superintendent i.e. on 01.01.2006, was placed in the GP of Rs.5400/- PB-2. Since he had already been granted financial upgradation w.e.f. 03.08.2006 and placed in the pre-revised Group 'A' scale of Rs.8000-275-13500/-, his pay was fixed in the revised Group 'A' scale with GP - Rs.5400/- in PB-3 w.e.f. 03.08.2006. As per the recommendations of the 6th CPC, ACP Scheme was replaced by Modified ACP Scheme (MACP Scheme) w.e.f. 01.09.2008. This Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Scheme provided for 3 financial upgradations i.e. on completion Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 of 10, 20 and 30 years of service. On completion of 30 years of service, the applicant was granted 3rd financial upgradation with 11 OA.247/2018 Grade Pay of Rs.6600/- in P.B.-3 vide E.O. No.18/2013 dated 21.01.2013.
3.2. It has been further submitted that CCS (Revised Pay) Rules, 2016 issued after acceptance of the recommendations of the 7th CPC have placed both the grades in different Pay Levels GP of Rs.5400/- in PB-2 has been placed in Pay Level-9 with initial pay of Rs.53,100/- and GP of Rs.5400/- in PB-3 has been placed in Pay Level-10 with initial pay of Rs.56,100/-. The DoPT vide its letter dated 26.07.2010 had clarified that the benefit of NFG granted to the Superintendent (Group 'B') officers after completion of 4 years would be treated / viewed as upgradation in terms of Para 8.1. Annexure-I of OM dated 19.05.2009 and the same would be off set against one financial upgradation under the MACPS. To make its point clear and uniform the DoPT published a comprehensive FAQ on MACP Scheme on its website on 01.04.2011. In the said FAQ at Sr.No.16, it was clarified that the Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
NFG Grade Pay would be viewed as one financial upgradation for Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 the purpose of MACPS in terms of Para 8.1 of Annexure-1 of MACPS dated 19.05.2009.12 OA.247/2018
3.3. It has been further submitted that various clarifications were sought from the Ministry regarding grant of 3rd financial upgradation to the grade pay of Rs.6600/- in PB-3 in respect of officers who have been granted 2nd financial upgradation under the erstwhile ACP Scheme between the period 01.01.2006 and 31.08.2008, since the new MAPCS came into existence from 01.09.2008. In this regard the Ministry vide letter dated 06.05.2013 had clarified that "as per para 5 of the Board's Circular of even number dated 20.05.2011, NFSG has no effect under ACP Scheme but the demand that NFG should not offset financial upgradation under MACP Scheme has not been agreed to by the DoPT for it being against the MACP Scheme (para 8.1 of the Scheme). This was further reiterated by the Ministry vide their letter dated 04.06.2014 wherein it was stated that the NFG granted during the period 01.01.2006 to 31.08.2008 would be counted / offset against the financial upgradation under the Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
MACPS.
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 3.4. It has been submitted that prior to the receipt of the above clarification, the Mumbai Cadre Control, i.e. Commissioner, C. Ex., Mumbai-I working under the overall supervision of Chief 13 OA.247/2018 Commissioner of Central Excise, C. Ex. & Service Tax, Mumbai Zone-I had conducted Screening Committee Meetings and granted 3rd financial upgradations under the MACPS to all officers who have completed 30 years of continuous regular service, with Grade Pay of Rs.6600/-. In this regard, the Establishment Order Nos.43/2010 dated 01.04.2010, 138/2010 dated 21.09.2010, 163/2011 dated 13.10.2011, 133/2012 dated 28.06.2012, 78/2012 dated 07.05.2012 and 18/2013 dated 21.01.2013 have been issued by Commissioner, Central Excise, Mumbai-I. 3.5. It has been submitted that pursuant to the clarification issued by the Ministry vide letter dated 06.05.2013, the Deputy Controller of Accounts, Central Board of Excise & Customs (CBEC), New Delhi had issued a Circular bearing no.DCA/WZ/Circular/2013-14 dated 24.05.2013 forwarding the minutes of the meeting of all PAOs of CBEC, Mumbai held on 06.05.2013. The first point discussed in the meeting was with Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
regard to "how to fix pay of Supdt. of CBEC under MACP". The Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 decision taken at the meeting is as below:
'There were doubts raised by the PAO how to fix Pay of Supdt. Of CBEC when they are given II ACP during the period 01.01.2006 and 31.08.2008, as they receive a NFG on 01.01.2006. Some opined that the NFG will be counted 14 OA.247/2018 at the time of fixing of pay but some opined otherwise. Dy. CA in her opinion agreed to let NSG be counted at the time of fixing pay for III MACP and instructed all PAO not to allow the GP of Rs.6600/- in any case and follow the procedure. Dy. CA instructed all PAOs to have uniform pay fixation method to be followed in all cases. It was further informed by Dy. CA that the clarification on this will be sought from HQ.' In view of the above, all the PAOs working in CBEC had started dishonoring the Establishment Orders granting the Grade Pay of Rs.6600/- in PB-3 to those officers who have been granted 2nd ACP benefits between the period 01.01.2006 and 31.08.2008 and rejecting the pay bills presented by the respective Administrative Officers. Further, the PAOs started recovery proceedings in cases where the officers were earlier granted similar benefits. The individual Commissionerates referred the matter to the Mumbai Cadre Control i.e. Respondent No.3.
3.6. It has been submitted that with a view to salvage the situation and to allow the fixation of pay of retiring officers, the Hemant Anant Mahabal Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 grant of 3rd financial upgradation under the MACPS was stayed and the Administrative Officers were directed to fix the officers' pay in GP of Rs.5400/- in PB-3 pending clarification from the Ministry. Further, a reference was made by Respondent No.3 to Member, CBEC, New Delhi vide letter F. No.II/39(CON)15-ACP/2009 dated 15 OA.247/2018 02.09.2013. The Ministry vide letter dated 04.06.2014 has informed that the Board has earlier vide letter dated 06.05.2013 addressed to the Chief Commissioner, Central Excise, Jaipur has clarified that the NFSG granted during the period 01.01.2006 to 31.08.2008 would be counted / offset against the financial upgradation under MACPS. Further, it has been informed that no orders giving MACP benefits in contravention to the directions of the Board is issued. Pursuant to the above clarification received from the Ministry, the respondents have vide Corrigendum dated 25.09.2014 to E.O. Nos.78/2012, 133/2012, 18/2013 & 176/2013 dated 07.05.2012, 28.06.2012, 21.01.2013 and 14.10.2013 respectively have withdrawn the grant of 3rd financial upgradation under MACPS to those officers who have been granted NFSG before the grant of 2nd ACP benefits.
3.7. It has been further submitted that in pursuance to the above, various representations were received from similarly placed Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
officers intimating that the said corrigendum was not in Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 consonance with the settled legal position as per Hon'ble Punjab and Haryana High Court judgment dated 19.10.2011 in the case of UOI & Ors Vs. Rajpal & Another, in CWP No.19387 of 2011 and 16 OA.247/2018 the judgment of the Hon'ble Madras High Court dated 16.10.2014 in the cased of UOI Vs. S. Balakrishnan & Ors. in WP No.11535 of 2014 and MP 1 of 2014 and requesting for reference to the Ministry of keeping the implementation of the corrigendum in abeyance. Similar representations were also received from other officers whose 3rd financial upgradations were withdrawn by the said corrigendum.
3.8. Considering the issue, the Respondent No. 3 made a reference to the Ministry vide letter F. No. dated 15.012015 seeking clarification whether the decisions of the Hon'ble High Court of Punjab and Haryana and the Hon'ble Madras High Court can be implemented by way of grant of Grade Pay of Rs.6600/- being the hierarchical grade pay of hierarchical post of Deputy Commissioner as 3rd financial upgradation for DR Inspectors who have completed 30 years of regular service. It is submitted that in the meantime, the Hon'ble Tribunal, Madras Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Bench vide Order dated 24.02.2014 in OA No. 675/201 3 held that R. Chandrasekaran the applicant therein had got 3 financial upgradations as detailed below and dismissed the O A. filed by R. Chandrasekaran.-17 OA.247/2018
Promotion as Superintendent in April 2001 NFG in PB-2 with Grade Pay of Rs. 5400/- on completion of 4 years of regular service in the Superintendents cadre (from GP of Rs. 4800/-) w.e.f. 01 01 2006; and 2nd ACP in PB-3 on completion of 24 years of service w.e.f.
04.06 2006.
3.9. It has been submitted that against the above order, R. Chandrasekaran filed a Writ Petition No. 19024 of 2014 before the Hon'ble High Court of Madras. The Hon'ble High Court of Madras in its order dated 08.12 2014 set aside the order passed by the Hon'ble Tribunal dated 24.02 2014 in O.A. No. 675/2013 and remitted the matter to DOP&T for fresh consideration with the following directions:-
The Department of Personnel, Public Grievances & Pensions (DOPT) is directed to consider the issue in extenso in the light of the provisions of the MACPS and the benefits given to the employees like the petitioner to count the non-functional scale for the purpose of ACPS. Such Hemant Anant Mahabal Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' exercise shall be completed within a period of three months from the date of receipt of the copy of the Writ Petition". Foxit PDF Reader Version: 2024.4.0 3.10. It has been submitted that the Central Board of Excise and Customs (CBEC) referred to the judgment of the Hon'ble Madras High Court along with the facts of the case of the applicant to the 18 OA.247/2018 DOPT for taking appropriate action. Initially, the DOPT vide Dy.No. 1078183 CR.15 dated 06.05.2015 opined since the applicant got only one promotion and 2nd ACP in the Grade Pay of Rs. 5400/- in his service career prior to implementation of MACP Scheme w.e.f.
01.09.2008, he is entitled to the grant of 3rd MACP in the Grade Pay of Rs.6600/- under MACP Scheme w.e.f. 04.06.2012 on completion of 30 years of service. The Respondents vide letter F No. A-2301 1/2.5/2013-Ad MA dated 26.05 2015 communicated the initial advice of the DOPT to the Chief Commissioner of Central Excise, Chennai Zone, Chennai for taking appropriate action and filing compliance report before the Hon'ble High court of Madras. Accordingly, pay fixation was made in the Pay scale of PB-3 Rs. 15600-39100/with the Grade Pay of Rs. 6600/- w.e.f.
04.06.2012 and arrears were also paid to the officer R Chandrasekaran.
3.11. It has been submitted that meanwhile, a number of similarly Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
placed officers of CBEC moved the Hon'ble Tribunals in various Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 stations. for similar benefits as that was extended to R. Chandrasekaran. The advice of DOPT was considered by the Respondents and it was observed that the DOPT had not counted 19 OA.247/2018 the Non-functional upgradation (NFU) granted to R. Chandrasekaran on 01.01.2006 in PB-2 Rs. 9300-34800/- with Grade Pay of Rs. 5400/- on completion of 4 years of service in the grade of Superintendent as one financial upgradation under the MACPS. Therefore, a proposal to extend similar benefits to similarly placed officers i.e. officers who were granted NFU in PB- 2 Rs. 9300-34800/- with GP of Rs. 5400/- during the period 01.01.2006 to 31.08.2008 (upto which date the ACP Scheme was in vogue) was sent to DOPT.
3.12. The DOPT re-examined the proposal of the Respondents in consultation with Department of Expenditure and it was decided vide I.D. Note dated 02.05.2015 that the grant of NFU in Grade Pay of Rs.5400/- in PB-2 to the Superintendents needs to be counted as one financial upgradation for the purpose of MACPS.
Therefore, they did not agree to the request of the Respondents for issuance of general instructions for ignoring the grant of NFU Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
with GP of Rs.5400/- in PB-2 to the Superintendents during the Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 period from 01.01.2006 to 31.08.2008 for the purpose of MACPS. 3.13. It has been further submitted that the decision of the DOPT was again examined by the respondents and it was observed that the initial advice of DOPT dated 06.05.2015 was not in 20 OA.247/2018 consonance with the second opinion dated 02.05.2016 which is common to all the similarly placed Superintendents. As a number of similar cases were pending in various Tribunals, the DOPT was once again consulted to provide inputs for defending these cases.
The DoPT vide their ID Note No.1173060/2016/CR dated 02.06 2016 reiterated the earlier opinion dated 02.05.2016 that the grant of NFU with Grade Pay of Rs. 5400/- in PB-2 to the Superintendent needs to be counted as one financial upgradation for the purpose of MACPS. The DOPT also advised the Respondents to take appropriate action in case of R. Chandrasekaran as well as all similar cases in terms of their earlier opinion dated 02 05.2016. Further, it was also advised that the court cases including the case of R. Chandrasekaran may be agitated / defended as per the MACP Scheme vide DOPT 0M dated 19.05. 2009 read with FAQ No.16. In view of the above subsequent advice of DOPT, the respondents letter dated Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
26.05.2015 addressed to Chief Commissioner, Central Excise, Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Channai Zone in the case of R. Chandrasekaran was withdrawn vide letter F. No.A-23011/25/2015-Ad.IIA dated 20.06.2016 and 21 OA.247/2018 the Chennai Commissionerate was requested to take appropriate corrective action in this regard.
3.14. It has been submitted that accordingly, the benefit of 3rd financial upgradation under MACP Scheme in the scale of PB-3 Rs.15600-39100/- with the Grade Pay of Rs 6600/- granted to R. Chandrasekaran was withdrawn and pay was revised / reduced vide revised Pay fixation statement issued vide C No. II/24/2/2/201-Accounts dated 08.08.2016 issued by Large Taxpayer Unit Chennai. Shri R Chandrasekaran was also requested to repay the excess paid pay and allowances amounting to Rs/2,55,207/-. It was further communicated that in case of failure to repay the excess amount, it would be recovered in six monthly instalments. Aggrieved against the denial of 3rd financial upgradation under MACPS with grade pay of Rs 6600/-
and consequent order for recovery of excess paid amount, Shri R. Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Chandrasekaran has filed another OA bearing No. Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 310/01380/2016 before the Hon'ble Tribunal, Chennai Bench and the same is pending. The above clarification was once again reiterated by the Ministry vide letter dated 07.12.2016 and the CCAs were directed to follow the guidelines of DOP&T/CBEC on 22 OA.247/2018 MACPS in letter and spirit. Further with regard to recovery of wrongful/excess payment made to individual officials, the Ministry had directed to take action in terms of DOP&T OM dated 02.03.2016.
3.15. It has been submitted that the DOPT vide OM dated 20.01.2016 forwarded a copy of stay order dated 08 08 2014 passed by the Hon'ble Supreme Court in CC No.8271/2014 (converted to SLP No.21803/2014) in the matter of UOI v/s Shri M.V. Mohannan Nair on the order of the Hon'b!e High Court of Kerala in OP(CAT) No. 2000/201 3(Z) regarding grant of MACP benefit in the promotional hierarchy. Thereafter, vide DOPT vide OM dated 01.03.2016 forwarded a copy of the decision of the Hon'ble Tribunal, Ahmedabad Bench in OA No. 120/000018/2015 filed by Shri Manubhai B. Rathore V/s UOI & Ors. whereby the demand of the applicant for grant of MACP Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant in promotional hierarchy was dismissed.
Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 3.16. Further, the DOPT OM dated 17.05.2016 forwarded a copy of the decision dated 28.04.2016 of Hon'ble Tribunal, Calcutta Bench in OA No.351/00195/2014 filed by Shri S.H.K. Murti & Ors Vs. UOI & Ors. whereby the demand of the applicant for 23 OA.247/2018 grant of MACP in promotional hierarchy has been dismissed.
The Hon'ble Tribunal in the above decision has held that the MACP benefit would be given in the hierarchy of next higher grade pay and not in grade pay of promotional hierarchy which will be payable on actual promotion. From the reading of the above decision of the Hon'ble Tribunal it is seen that the Hon'ble Tribunal has taken into consideration the decisions of the various Tribunals, High Courts and the Hon'ble Supreme Court which are brought out as under:-
(i) The Hon'ble Supreme Court in the case of State of Punjab V. Davinder Pal Singh Bhullar, (2014) 1 SCC (L&S) 208 = (2011) 14 SCC 770.
(ii) The Hon'ble High Court in the case of R.S. Sengor & Ors.
Vs. UOI & Ors, W.P. (C) 3420/2010 decided on 04.04.2011;
(ii) The Hon'ble High Court in the case of Swaran Pal Singh & Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Ors. Vs. UOI & Ors, W.P. (C) No.5082/2013; Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0
(iii) The Hon'ble High Court of Madras in the case of UOI & Ors. Vs. S. Balakrishnan, W.P. No.11535/2014; 24 OA.247/2018
(iv) The Hon'ble High Court of Punjab & Haryana High Court in CWP No.19387/2011;
(v) The Hon'ble High Court of Gujarat in the case of Hasmukh B. Desai, Special Civil Application No.4464/2016 decided on 28.06.2016;
(vi) CAT, Principal Bench, New Delhi in the case of All India CGHS Employees Association Vs. Union of India in O.A.No.3441/2012 decided on 31.01.2014;
(vii) The CAT, Chandigarh Bench, in OA.No.1038/CH/2010 in the case of Raj Pal Vs. UOI & Ors., decided on 26.11.2012;
(viii) The CAT, Ernakulam Bench in OA.No.816/2012 in the case of M.V. Mohanan Nair decided on 29.01.2013;
(ix) The CAT, Ernakulam Bench in a common order dated 06.04.2017 in OA Nos.5/2016, 89/2016, 91/2016, 176/2016, 262/2016, 488/2016, 651/2016, 725/2016 and 726/2016 in the Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 case of A. Praveen Kumar and Ors.
(x) In addition, the CAT, Ahmedabad Bench in the case of Vijay Kumar Thakkar & Ors. Vs. Union of India & Others in OA 25 OA.247/2018 Nos.581/2016, 582/2016, 653/2016, 654/2016, 655/2016, 656/2016 and 133/2017 passed on 22.09.2017.
(xi) The CAT, Ahmedabad Bench in the case of Bajranglal & Ors. Vs. UOI in O.A.No.247/2017 decided on 28.07.2017.
3.17. It has been submitted that a reference was received from Commissioner, Central Excise and Service Tax, Audit-II, Pune Commissionerate vide letter dated Nil June, 2017 intimating receipt of representation from the applicant dated 08.06.2017 and surrendering of the NFU benefit granted to him since 01.01.2006 and seeking 3rd financial upgradation w.e.f.
03.08.2012. The said reference was considered by the respondents and the office of the applicant was informed vide letter dated 25.09.2017 that there is no provision of giving option nor were the options of the officers called for before Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
implementing the grant of NFG to the individual officers and, Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 therefore, the request of the officers cannot be acceded to. 26 OA.247/2018 3.18. It has been further submitted that another representation of the applicant dated 30.10.2017 was forwarded by the Joint Commissioner CCO, Pune Zone vide letter dated 06.12.2017 and the said representation was also considered by the respondents. Subsequently, the Joint Commissioner, CCO, Pune Zone was informed vide letter dated 11.01.2018 that the applicant had been granted three financial upgradations in his career prior to the grant of 3rd financial upgradation withdrawn vide corrigendum dated 25.09.2014 and, therefore, he is not eligible for grant of any further financial upgradation under the MACPS.
4. The applicant has filed rejoinder to the reply submitted by the applicant reiterating and elaborating the earlier submissions.
He has placed reliance on the order of CAT, Madras Bench in O.A.No.280/2012 in the case of S. Balakrishnan & Others vs. Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Union of India & Others. He submitted that in Para 5 of the Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 order dated 22.07.2013 in O.A.280/2012, the Chennai Bench of the Tribunal has interpreted that para 8.1 of the MACP instructions is a corollary to para 8 and thus applicable only to 27 OA.247/2018 the departments where the Recruitment Rules provides for promotion to the post carrying the same Grade Pay.
4.1. The applicant has placed reliance on the judgment of Hon'ble Supreme Court in the case of State of Karnataka and Others vs. C. Lalitha in Civil Appeal No.919/2002, wherein it was held that all persons similarly situated should be treated similarly. Only because one person has approached the Court that would not mean that persons similarly situated should be treated differently. Therefore, he submitted that increment granted to the applicant cannot be withdrawn and the recovery amount of Rs.2,39,112/- should be refunded to the applicant along with interest of 18%.
5. The respondents in turn have filed sur-rejoinder reiterating and elaborating their earlier reply. They have placed reliance on the judgment of Hon'ble Supreme Court dated 05.03.2020 in the case of M.V. Mohanan Nair, wherein the Hon'ble Supreme Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Court has reiterated the principles as to when a decision of the Hon'ble Supreme Court is said to be the law declared by the Hon'ble Supreme Court.28 OA.247/2018
6. Thereafter, additional written submissions were also filed by the applicant on 28.05.2025 stating that the judgment of Hon'ble Supreme Court in SLP (C) No.8015/2022 dated 12.12.2024 in the case of Union of India vs. N.M. Raut & Ors.
is per incuriam and the same need not be considered as precedence in the applicant's case and put forth his arguments discussing the ACP and MACP Scheme and its objectives.
6.1. He has placed reliance on the judgment of Hon'ble Supreme Court in the case of Union of India & Others vs. M.V. Mohanan Nair; order of the Principal Bench of this Tribunal in O.A.508/2022 dated 11.07.2024 in the case of DASS Officers Association (Regd) & Others vs. Govt. of NCT of Delhi through its Chief Secretary Delhi Secretariat & Others; the judgment of Hon'ble Supreme Court in Civil Appeal No.1579/2021 in the case of Union of India vs. R.K. Sharma & Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Ors. dated 28.04.2021; the judgment of Hon'ble Supreme Court Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 in the case of Civil Appeal No.442/2022 in the case of The Director, Directorate of Enforcement & Anr. Vs. K. Sudheesh Kumar & Ors. decided on 28.01.2022. In this case it was held that "respondent Nos.1 and 2 are the retired employees and till 29 OA.247/2018 date they have received the pension considering the grade pay of Rs.6600/- and being retired persons it will be very difficult for them to refund the difference in the pay pension, in the peculiar facts and circumstances of the case there shall be no recovery of the difference in the pension between the grade pay of Rs.5400/- and grade pay of Rs.6600/- for the period prior to December, 2021. However, on refixation of the pension as per the present judgment and order, fixing their grade pay of Rs.5400/- they shall be paid the pension, accordingly from January, 2022 onwards.
6.1.1. We find that the facts of the applicant's case are different as the recovery has already been made from the applicant's retiral benefits at the time of his retirement and the same is not being made after his retirement. The order of recovery was passed when the applicant was in service in the present case. 6.2. He has further placed reliance on the following judicial Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 pronouncements:-30 OA.247/2018
(i) Hon'ble Supreme Court decision dated 31.10.2017 in SLP (Civil) No.25590/2014 in the case of National Insurance Company Limited vs. Pranay Sethi and Others;
(ii) Judgment of Punjab & Haryana High Court in the case of Indo Swiss Time Limited vs. Umrao and Ors., AIR 1981 P&H 213; and
(iii) OM of DoPT dated 12.01.2010.
7. The respondents in turn have filed reply to the additional written submissions / pleadings filed by the applicant reiterating and elaborating their earlier stand that the Grade Pay of Rs.6600/- was rightly withdrawn and recovery was rightly made.
It has been submitted that the Hon'ble Supreme Court in the case of N.M. Raut (Supra) decided on 12.12.2024 has specifically dwell upon the issue of treating NFSG as financial upgradation under the MACP and decided that the financial Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
upgradation under the said rules have to be accounted for and Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 will be treated as financial upgradations earned for the purpose of reckoning the 10 year intervals and the three financial 31 OA.247/2018 upgradations. It has been submitted that the said judgment cannot be questioned by the applicant.
8. Thereafter, the applicant has filed written notes of arguments on 18.12.2025.
9. During the final hearing, the applicant relied upon the pleadings and written notes of arguments. The learned counsel for the respondents has relied upon affidavit in reply and the order of this Tribunal in O.A.Nos.210/2020 and 18/2022, pronounced on 19.06.2025 wherein similar issue was involved.
10. We have considered the contentions of both the sides and given our thoughtful consideration.
10.1. The applicant was appointed as direct recruit Inspector of Central Excise and Customs on 03.08.1982. He was granted 1st ACP on 09.08.1999. He was granted 2nd ACP on 03.08.2006 on Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant completion of 24 years of service in the Grade Pay of Rs.4800/- Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 in the pay scale of Rs.8000-275-13500 with effect from 01.01.2006. He was further granted financial upgradation on 03.08.2006 in the Grade Pay of Rs.5400/- with effect from 01.01.2006. He was granted 3rd MACP with Grade Pay of 32 OA.247/2018 Rs.6600/- with effect from 03.08.2012. However, the CBEC (now CBIC) issued clarification to grant Grade Pay of Rs.6600/-
vide letter dated 29.09.2009. Thereafter, vide order dated 25.09.2014, the financial upgradation granted in the Grade Pay of Rs.6600/- was withdrawn as the applicant was already granted NFSG before grant of 2nd ACP. There was representation and litigation in all parts of the country, therefore, vide order dated 12.05.2015, the earlier order dated 25.09.2014 withdrawing the Grade Pay of Rs.6600/- was kept in abeyance.
11. On 20.06.2016 a clarification was issued that the NFSG of Rs.5400/- in PB-2 to be counted as one financial upgradation for the purpose of MACP and, therefore, the Grade Pay of Rs.6600/-
was withdrawn.
11.1. The applicant herein and other similarly placed applicants have made representation to the respondents. The matter was referred to the DoPT. The DoPT vide OM dated 01.03.2016 Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 forwarded a copy of order of Ahmedabad Bench in OA No. 120/000018/2015 filed by Shri Manubhai B. Rathore V/s UOI & Ors. whereby the demand of similarly placed applicants for grant of MACP in promotional hierarchy was dismissed. A 33 OA.247/2018 similar order was passed by the Calcutta Bench in OA No.351/00195/2014 filed by Shri S.H.K. Murti & Ors Vs. UOI & Ors. whereby the demand of the applicant for grant of MACP in promotional hierarchy was dismissed vide order dated 28.04.2016.
12. The contention of the applicant that he was not given any option before implementing the grant of NFSG was replied by the respondents vide letter dated 25.09.2017 that there is no provision of giving option nor were the option of the officer called for before implementing the grant of NFSG to the eligible officers.
Thus, the contention of the applicant is that Grade Pay of Rs.6600/- which was withdrawn with effect from 03.08.2012 vide order dated 21.01.2013 was not in accordance with law, therefore, the respondents should be directed to issue a revised pay fixation order and should be restrained from effecting any Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant recovery in terms of pay fixation order dated 08.12.2016 and Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 further revise pay fixation order by granting Grade Pay of Rs.6600/- with consequential arrears and grant him interest.
13. We find that the Government of India with a view to deal with the problem of genuine stagnation and hardship faced by 34 OA.247/2018 the employees due to lack of adequate promotional avenues introduced ACP Scheme w.e.f. 9th August, 1999. ACP Scheme contemplated grant of two financial upgradations to Groups 'B', 'C' & 'D' employees on completion of 12 and 24 years of service.
The financial upgradations under the ACP Scheme is placement in the higher pay scale and financial benefits in the higher pay scale without regular promotion. Such financial upgradation is on personal basis and does not amount to regular promotion nor does it require creation of a new post.
14. The 6th CPC has recommended the adoption of MACP Scheme primarily to rectify the problems arising from inter-
departmental disparities.
15. In order to bring systematic changes in the existing scheme of ACP, MACP Scheme was recommended by the 6th CPC which was accepted by the Government with certain modifications vide its OM dated 19.05.2009. Under the MACP Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Scheme, three financial upgradations are made available in the next grade pay to an employee who has completed 10, 20 and 30 years of regular service in the same post without getting any promotion. Para 2 of the MACP Scheme provides that the MACP 35 OA.247/2018 Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay.
16. 6th CPC recommended non-functional upgradation which has been accepted by the Government of India vide his Resolution dated 29th August, 2008 (Annexure A-7). Para (x)(e) reads thus:
"(x) Regarding Group 'B' cadres, the Commission's recommendations will be modified in the following manner:-
(a) xxx xxx xxx
(b) xxx xxx xxx
(c) xxx xxx xxx
(d) xxx xxx xxx
(e) Group B officers of Departments of Posts, Revenue, etc. will be granted Grade Pay of Rs.5400 in PB-2 on non-
functional basis after 4 years of regular service in the grade pay of Rs.4800 in PB-2."
Digitally signed by Hemant Anant MahabalHemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
17. In terms of these recommendations, Group 'B' officers of Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Department of Posts, Revenue etc. are entitled to GP of Rs.5400 in PB-2 on non-functional basis after 4 years of regular service in the GP of Rs.4800 in PB-2. In other words, Group 'B' officers 36 OA.247/2018 of Department of Posts, Revenue etc., who puts in 4 years of regular service in the GP of Rs.4800 will be entitled to GP of Rs.5400 in PB-2 on non-functional basis. In para 4 of Government Resolution dated 29th August, 2008 (Annexure A-7) deals with ACP Scheme. It reads thus:
"4. Assured Career Progression Scheme Sl. Recommendations of the Decision of the No. Sixth Pay Commission Government
1. The Commission has Accepted with the recommended that the modification that existing scheme of Assured there will be three Career Progression may be upgradations continued with two financial under the ACP upgradations being allowed Scheme after 10, as at present with the 20 and 30 years of following modifications: service.
i) The Scheme will also be available to all posts belonging to Group A -
whether isolated or not. Accepted.
Organised Group A
services will, however, not
Hemant Anant
Digitally signed by Hemant Anant Mahabal
DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= be covered under the scheme.
44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0
ii) Benefit of pay fixation available at the time of normal promotion shall be allowed at the time of financial upgradations under the scheme Thus, an increase of 2.5% of pay 37 OA.247/2018 and grade pay shall be available as financial upgradation under the Accepted with the scheme. modification that the rate of
iii) The grade pay shall increment will be change at the time of 3%.
financial upgradation under this scheme. The grade pay given at the time of financial upgradation under ACPS will be the immediate next higher grade pay in the hierarchy of revised pay bands and grade pay being recommended. Thus, grade pay at the time of financial upgradation under ACPS can, in certain cases where regular promotion is Accepted.
not between two
successive grades, be
different than what is
available at the time of
regular promotion. In such
cases, the higher grade pay
attached to the next
promotion post in the
hierarchy of the concerned
cadre/organization will be
given only at the time of
Hemant Anant
Digitally signed by Hemant Anant Mahabal
DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal regular promotion.
Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 38 OA.247/2018
18. From this para it is contemplated that Grade Pay shall change at the time of financial upgradation under MACP Scheme.
19. 6th CPC had recommended formulation of MACP Scheme.
Accordingly, DoP&T framed the policy vide OM dated 19th May, 2009, which is known as MACP Scheme for the Central Government Civil employees. Para 2 of MACP Scheme states that MACP Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1 Part A of First Schedule of CCS (Revised Pay) Rules, 2008.
20. Controversy has arisen because of para 8.1. For better understanding of the controversy involved, it would be apposite to reproduce para 8 and 8.1 in verbatim. It reads thus:
Digitally signed by Hemant Anant MahabalHemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
"8. Promotions earned in the post carrying same Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 grade pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACPS.
8.1 Consequent upon the implementation of Sixth CPC's recommendations, grade pay of Rs.5400 is now two pay bands viz., PB-2 and PB-3. The grade pay of Rs.5400 in PB-2 and Rs.5400 in PB-3 shall be 39 OA.247/2018 treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme."
21. Para 8 states that promotions earned in the post carrying same grade pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACPS. Para 8.1 states that because of implementation of 6th CPC's recommendations, grade pay of Rs.5400 is now two pay bands viz., PB-2 and PB-3. The grade pay of Rs.5400 in PB-2 and Rs.5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme. Para 8.1 contemplates that GP of Rs.5400 in PB-2 and Rs.5400 in PB-3 shall be treated as a separate Grade Pay for the purpose of grant of upgradation under MACP Scheme.
22. We further find that Hon'ble Supreme Court in the case of Director, Directorate of Enforcement and another vs. K. Sudheesh Kumar, 2022 (3) SCC 649, has held as under:-
Digitally signed by Hemant Anant MahabalHemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
"9. It is specifically observed and held by this Court Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 in the aforesaid decision that MACP has nothing to do with the next promotional post and what the employee would be entitled would be the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in the CCS (Revised Pay) Rules, 2008. As per clause 8.1 of the MACP Scheme 'consequently upon the implementation of Sixth CPC's recommendations, grade pay of PB2 and PB3 would be Rs.5400. It specifically provides that the grade pay of 40 OA.247/2018 Rs.5400 in PB2 and Rs.5400 in PB3 shall be treated as separate grade pays for the purpose of grant of upgradations under the MACP Scheme'. Therefore, respondent Nos.1 &2 as PB2 shall be entitled to the next grade pay of Rs.5400 as per clause 8.1 and as per Section 1, Part A of the First Schedule of the CCS (Revised Pay) Rules, 2008. The High Court has allowed the grade pay of Rs.6600 by considering the next promotion post of Assistant Director i.e., Deputy Director which carries a grade pay of Rs.6600.
However, the aforesaid interpretation would be contrary to the MACP Scheme.
10. On considering the relevant clauses of the MACP Scheme, it appears that the MACP Scheme envisages placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part A of the First Schedule of the CCS (Revised Pay) Rules, 2008. Thus, the High Court has committed a grave error in allowing the grade pay of Rs.6600 the grade pay which was available to the next promotional post as Deputy Director. Respondent Nos.1 & 2 as per PB2 were entitled to the grade pay of Rs.5400 as PB 3 as per clause 8.1.
11. By the impugned judgment and order and while granting grade pay of Rs.6600 to respondent Nos.1 & 2 virtually, the High Court has modified the MACP Scheme which has been framed by the Government on the recommendations of the expert body like the pay commission and its recommendations for the MACP Scheme. As observed and held by this Court in the case of M.V. Mohanan Nair (supra) the ACP which is now superseded by MACP Scheme is a matter of Government policy and interfering with the recommendations of the expert body like the pay commission and its recommendations for the MACP Scheme would have Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' serious impact on the public exchequer. It is further Foxit PDF Reader Version: 2024.4.0 observed that the recommendations of the pay commission for the MACP Scheme have been accepted by the Government and implemented. It is further observed that therefore the High Court has no jurisdiction to interfere with the Government policies in the form of MACP Scheme which was after accepting the Sixth Central Pay Commission. In view of the above and for the reasons stated above and the binding decision of this Court in the case of M.V. Mohanan Nair (supra) 41 OA.247/2018 with which we also agree, the impugned judgment and order passed by the High Court granting grade pay of Rs.6600 to respondent Nos.1& 2 is unsustainable and deserves to be quashed and set aside."
23. The respondents have contended that CCS (Revised Pay) Rules, 2016 issued after acceptance of the recommendations of the 7th CPC have placed both the grades in different Pay Levels GP of Rs.5400/- in PB-2 has been placed in Pay Level-9 with initial pay of Rs.53,100/- and GP of Rs.5400/- in PB-3 has been placed in Pay Level-10 with initial pay of Rs.56,100/-. The DoPT vide its letter dated 26.07.2010 had clarified that the benefit of NFG granted to the Superintendent (Group 'B') officers after completion of 4 years would be treated / viewed as upgradation in terms of Para 8.1. Annexure-I of OM dated 19.05.2009 and the same would be off set against one financial upgradation under the MACPS. To make its point clear and uniform the DoPT published a comprehensive FAQ on MACP Scheme on its website on 01.04.2011. In the said FAQ at Sr.No.16, it was clarified that the Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 NFG Grade Pay would be viewed as one financial upgradation for the purpose of MACPS in terms of Para 8.1 of Annexure-1 of MACPS dated 19.05.2009.42 OA.247/2018
24. It has been further submitted that various clarifications were sought from the Ministry regarding grant of 3rd financial upgradation to the grade pay of Rs.6600/- in PB-3 in respect of officers who have been granted 2nd financial upgradation under the erstwhile ACP Scheme between the period 01.01.2006 and 31.08.2008, since the new MACPS came into existence from 01.09.2008. The Ministry vide letter dated 06.05.2013 had clarified that "as per para 5 of the Board's Circular of even number dated 20.05.2011, NFSG has no effect under ACP Scheme but the demand that NFG should not offset financial upgradation under MACP Scheme has not been agreed to by the DoPT for it being against the MACP Scheme (para 8.1 of the Scheme). This was further reiterated by the Ministry vide their letter dated 04.06.2014 wherein it was stated that the NFG granted during the period 01.01.2006 to 31.08.2008 would be counted / offset against the financial upgradation under the MACPS.Digitally signed by Hemant Anant Mahabal
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
25. Prior to the receipt of the above clarification, the Mumbai Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Cadre Controlling Authority, i.e. Commissioner, C. Ex., Mumbai-I working under the overall supervision of Chief Commissioner of Central Excise, C. Ex. & Service Tax, Mumbai Zone-I had 43 OA.247/2018 conducted Screening Committee Meetings and granted 3rd financial upgradations under the MACPS to all officers who have completed 30 years of continuous regular service, with Grade Pay of Rs.6600/-. The Establishment Order Nos.43/2010 dated 01.04.2010, 138/2010 dated 21.09.2010, 163/2011 dated 13.10.2011, 133/2012 dated 28.06.2012, 78/2012 dated 07.05.2012 and 18/2013 dated 21.01.2013 were issued by Commissioner, Central Excise, Mumbai-I.
26. Pursuant to the clarification issued by the Ministry vide letter dated 06.05.2013, the Deputy Controller of Accounts, Central Board of Excise & Customs (CBEC), New Delhi had issued a Circular bearing no.DCA/WZ/Circular/2013-14 dated 24.05.2013 forwarding the minutes of the meeting of all PAOs of CBEC, Mumbai held on 06.05.2013. The first point discussed in the meeting was with regard to "how to fix pay of Supdt. of CBEC under MACP". The decision taken at the meeting is as below: Digitally signed by Hemant Anant Mahabal
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
'There were doubts raised by the PAO how to fix Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Pay of Supdt. Of CBEC when they are given II ACP during the period 01.01.2006 and 31.08.2008, as they receive a NFG on 01.01.2006. Some opined that the NFG will be counted at the time of fixing of pay but some opined otherwise. Dy. CA in her opinion agreed to let NSG be counted at the time of fixing pay for III MACP and instructed all PAO not to allow the GP of 44 OA.247/2018 Rs.6600/- in any case and follow the procedure. Dy. CA instructed all PAOs to have uniform pay fixation method to be followed in all cases. It was further informed by Dy. CA that the clarification on this will be sought from HQ.' In view of the above, all the PAOs working in CBEC had started dishonoring the Establishment Orders granting the Grade Pay of Rs.6600/- in PB-3 to those officers who have been granted 2nd ACP benefits between the period 01.01.2006 and 31.08.2008 and rejecting the pay bills presented by the respective Administrative Officers. Further, the PAOs started recovery proceedings in cases where the officers were earlier granted similar benefits. The individual Commissionerates referred the matter to the Mumbai Cadre Control i.e. Respondent No.3.
27. Therefore, with a view to salvage the situation and to allow the fixation of pay of retiring officers, the grant of 3rd financial upgradation under the MACPS was stayed and the Administrative Officers were directed to fix the officers' pay in GP of Rs.5400/- in Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
PB-3 pending clarification from the Ministry. Further, a reference Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 was made by Respondent No.3 to Member, CBEC, New Delhi vide letter F. No.II/39(CON)15-ACP/2009 dated 02.09.2013. The Ministry vide letter dated 04.06.2014 has informed that the Board 45 OA.247/2018 has earlier vide letter dated 06.05.2013 addressed to the Chief Commissioner, Central Excise, Jaipur has clarified that the NFSG granted during the period 01.01.2006 to 31.08.2008 would be counted / offset against the financial upgradation under MACPS. Further, it has been informed that no orders giving MACP benefits in contravention to the directions of the Board is issued. Pursuant to the above clarification received from the Ministry, the respondents have vide Corrigendum dated 25.09.2014 to E.O. Nos.78/2012, 133/2012, 18/2013 & 176/2013 dated 07.05.2012, 28.06.2012, 21.01.2013 and 14.10.2013 respectively have withdrawn the grant of 3rd financial upgradation under MACPS to those officers who have been granted NFSG before the grant of 2nd ACP benefits.
28. In pursuance to the above orders/clarifications, various representations were received from similarly placed officers intimating that the said corrigendum was not in consonance with Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
the settled legal position as per Hon'ble Punjab and Haryana High Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Court judgment dated 19.10.2011 in the case of UOI & Ors Vs. Rajpal & Another, in CWP No.19387 of 2011 and the judgment of the Hon'ble Madras High Court dated 16.10.2014 in the case of 46 OA.247/2018 UOI Vs. S. Balakrishnan & Ors. in WP No.11535 of 2014 and MP 1 of 2014 and requesting for reference to the Ministry of keeping the implementation of the corrigendum in abeyance. Similar representations were also received from other officers whose 3 rd financial upgradations were withdrawn by the said corrigendum.
29. Considering the issue, the Respondent No. 3 made a reference to the Ministry vide letter F. No.II/39(CON)MACPS-
01/2015 dated 15.012015 seeking clarification whether the decisions of the Hon'ble High Court of Punjab and Haryana and the Hon'ble Madras High Court can be implemented by way of grant of Grade Pay of Rs.6600/- being the hierarchical grade pay of hierarchical post of Deputy Commissioner as 3rd financial upgradation for DR Inspectors who have completed 30 years of regular service. In the meantime, Chennai Bench of the Tribunal, vide Order dated 24.02.2014 in OA No. 675/201 3 held that R. Chandrasekaran the applicant therein had got 3 financial Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
upgradations as detailed below and dismissed the O A. filed by Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 R. Chandrasekaran.-
Promotion as Superintendent in April 2001 47 OA.247/2018 NFG in PB-2 with Grade Pay of Rs. 5400/- on completion of 4 years of regular service in the Superintendents cadre (from GP of Rs. 4800/-) w.e.f. 01 01 2006; and 2nd ACP in PB-3 on completion of 24 years of service w.e.f. 04.06 2006.
30. R. Chandrasekaran filed a Writ Petition No. 19024 of 2014 before the Hon'ble High Court of Madras against the above order of Tribunal. The Hon'ble High Court of Madras in its order dated 08.12 2014 set aside the order passed by the Chennai Bench of Tribunal dated 24.02 2014 in O.A. No. 675/2013 and remitted the matter to DOP&T for fresh consideration with the following directions:-
The Department of Personnel, Public Grievances & Pensions (DOPT) is directed to consider the issue in extenso in the light of the provisions of the MACPS and the benefits given to the employees like the petitioner to count the non-functional scale for the purpose of ACPS. Such exercise shall be completed Digitally signed by Hemant Anant Mahabal within a period of three months from the date of receipt of the copy of the Writ Petition".
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0
31. The Central Board of Excise and Customs (CBEC) referred to the judgment of the Hon'ble Madras High Court along with the facts of the case of Mr.R. Chandrasekaran to the DOPT for taking appropriate action. Initially, the DOPT vide Dy.No. 1078183 CR.15 48 OA.247/2018 dated 06.05.2015 opined since the applicant got only one promotion and 2nd ACP in the Grade Pay of Rs. 5400/- in his service career prior to implementation of MACP Scheme w.e.f.
01.09.2008, he is entitled to the grant of 3rd MACP in the Grade Pay of Rs.6600/- under MACP Scheme w.e.f. 04.06.2012 on completion of 30 years of service. The Respondents vide letter F No. A-2301 1/2.5/2013-Ad MA dated 26.05 2015 communicated the initial advice of the DOPT to the Chief Commissioner of Central Excise, Chennai Zone, Chennai for taking appropriate action and filing compliance report before the Hon'ble High court of Madras. Accordingly, pay fixation was made in the Pay scale of PB-3 Rs. 15600-39100/with the Grade Pay of Rs. 6600/- w.e.f.
04.06.2012 and arrears were also paid to the officer R Chandrasekaran.
32. Thereafter, a number of similarly placed officers of CBEC moved the Hon'ble Tribunals in various stations for similar benefits Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
as that was extended to R. Chandrasekaran. The advice of DOPT Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 was considered by the Respondents and it was observed that the DOPT had not counted the Non-functional upgradation (NFU) granted to R. Chandrasekaran on 01.01.2006 in PB-2 Rs. 9300- 49 OA.247/2018 34800/- with Grade Pay of Rs. 5400/- on completion of 4 years of service in the grade of Superintendent as one financial upgradation under the MACPS. Therefore, a proposal to extend similar benefits to similarly placed officers i.e. officers who were granted NFU in PB-2 Rs. 9300-34800/- with GP of Rs. 5400/- during the period 01.01.2006 to 31.08.2008 (upto which date the ACP Scheme was in vogue) was sent to DOPT.
33. The DOPT re-examined the proposal of the Respondents in consultation with Department of Expenditure and it was decided vide I.D. Note dated 02.05.2015 that the grant of NFU in Grade Pay of Rs.5400/- in PB-2 to the Superintendents needs to be counted as one financial upgradation for the purpose of MACPS.
Therefore, they did not agree to the request of the Respondents for issuance of general instructions for ignoring the grant of NFU with GP of Rs.5400/- in PB-2 to the Superintendents during the period from 01.01.2006 to 31.08.2008 for the purpose of MACPS.
Digitally signed by Hemant Anant MahabalHemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
34. The decision of the DOPT was again examined by the Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 respondents and it was observed that the initial advice of DOPT dated 06.05.2015 was not in consonance with the second opinion dated 02.05.2016 which is common to all the similarly placed 50 OA.247/2018 Superintendents. As a number of similar cases were pending in various Tribunals, the DoPT was once again consulted to provide inputs for defending these cases. The DoPT vide their ID Note No.1173060/2016/CR dated 02.06 2016 reiterated the earlier opinion dated 02.05.2016 that the grant of NFU with Grade Pay of Rs. 5400/- in PB-2 to the Superintendent needs to be counted as one financial upgradation for the purpose of MACPS. The DOPT also advised the Respondents to take appropriate action in case of R. Chandrasekaran as well as in all similar cases in terms of their earlier opinion dated 02 05.2016. It was also advised that the court cases including the case of R. Chandrasekaran may be agitated / defended as per the MACP Scheme vide DOPT 0M dated 19.05. 2009 read with FAQ No.16. In view of the above subsequent advice of DOPT, the respondent's letter dated 26.05.2015 addressed to Chief Commissioner, Central Excise, Channai Zone in the case of R. Chandrasekaran was withdrawn Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
vide letter F. No.A-23011/25/2015-Ad.IIA dated 20.06.2016 and Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 the Chennai Commissionerate was requested to take appropriate corrective action in this regard.51 OA.247/2018
35. We further find that Hon'ble Supreme Court in the case of Union of India vs. N.M. Raut, SLP (C) No.8015/2022 dated
12.12.2024 has held that financial upgradation granted to the applicant earlier cannot be ignored as the same would be contrary to the intent and purpose of the Scheme. It will be helpful to extract herein Para 12 to 21 of the above judgment as under:-
"12. It would be relevant to reproduce the relevant clauses of the MACPS, which read as under:
"1. There shall be three financial upgradations under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service respectively. Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.
2. The MACPS envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part-A of the first schedule of the CCS (Revised Pay) Rules, 2008. Thus, the grade pay at the time of financial upgradation under the MACPS can, in certain cases where regular promotion is not between two successive grades, be different than what is available at the time of regular promotion. ln such cases, the higher grade pay attached to the next promotion post in the hierarchy of the concerned cadre/organisation will be Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 given only at the time of regular promotion. xxx xxx xxx
5. Promotions earned/upgradation granted under the ACP Scheme in the past to those grades which now carry the same grade pay due to merger of pay scales/upgradations of posts recommended by the Sixth 52 OA.247/2018 Pay Commission shall be ignored for the purpose of granting upgradations under Modified ACPS. Illustration-1 The pre-revised hierarchy (in ascending order) in a particular organization was as under:-
Rs.5000-8000, Rs.5500-9000 & Rs. 6500-10500.
(a) A Government servant who was recruited in the hierarchy in the pre-revised pay scale Rs. 50008000 and who did not get a promotion even after 25 years of service prior to 1.1.2006, in his case as on 1.1.2006 he would have got two financial upgradations under ACP to the next grades in the hierarchy of his organization, i.e., to the pre revised scales of Rs. 5500-9000 and Rs. 650010500.
(b) Another Government servant recruited in the same hierarchy in the pre-revised scale of Rs. 50008000 has also completed about 25 years of service, but he got two promotions to the next higher grades of Rs. 5500-9000 & Rs. 6500-10500 during this period.
In the case of both (a) and (b) above, the promotions/financial upgradations granted under ACP to the pre-revised scales of Rs. 5500-9000 and Rs. 6500- 10500 prior to 1.1.2006 will be ignored on account of merger of the pre revised scales of Rs. 5000- 8000, Rs. 5500-9000 and Rs. 6500-10500 recommended by the Sixth CPC. As per CCS (RP) Rules, both of them will be granted grade pay of Rs.4200 in the pay band PB-2. After the implementation of MACPS, two financial upgradations will be granted both in the case of (a) and
(b) above to the next higher grade pays of Rs. 4600 and Digitally signed by Hemant Anant Mahabal Rs. 4800 in the pay band PB-2.
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal
6. In the case of all the employees granted financial Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 upgradations under ACPS till 01.01.2006, their revised pay will be fixed with reference to the pay scale granted to them under the ACPS.
6.1 xxx xxx xxx 6.2 In cases where financial upgradation had been granted to Government servants in the next higher scale in the hierarchy of their cadre as per the provisions of the 53 OA.247/2018 ACP Scheme of August, 1999, but whereas as a result of the implementation of Sixth CPC's recommendations, the next higher post in the hierarchy of the cadre has been upgraded by granting a higher grade pay, the pay of such employees in the revised pay structure will be fixed with reference to the higher grade pay granted to the post. To illustrate, in the case of Jr. Engineer in CPWD, who was granted 1st ACP in his hierarchy to the grade of Asstt.
Engineer in the pre-revised scale of Rs.6500-10500 corresponding to the revised grade pay of Rs.4200 in the pay band PB-2, he win now be granted grade pay of Rs4600 in the pay band PB-2 consequent upon upgradation of the post of Asstt. Enggs. In CPWD by granting them the grade pay of Rs.4600 in PB-2 as a result of Sixth CPC's recommendation. However, from the date of implementation of the MACPS, all the financial upgradations under the Scheme should be done strictly in accordance with the hierarchy of grade pays in pay bands as notified vide CCS (Revised Pay) Rules, 2008. xxx xxx xxx
9. 'Regular service' for the purposes of the MACPS shall commence from the date of joining of a post in direct entry grade on a regular basis either on direct recruitment basis or on absorption/re-employment basis. Service rendered on adhoc/contract basis before regular appointment on preappointment training shall not be taken into reckoning. However, past continuous regular service in another Government Department in a post carrying same grade pay prior to regular appointment in a new Department, without a break, shall also be counted towards qualifying regular service for the purposes of MACPS only (and not for the regular promotions). However, benefits under the MACPS in such cases shall Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= not be considered till the satisfactory completion of the probation period in the new post.
0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 xxx xxx xxx
13. Existing time-bound promotion scheme, including in-
situ promotion scheme, Staff' Car Driver Scheme or any other kind of promotion scheme existing for a particular category of employees in a Ministry/Department or its offices, may continue to be operational for the concerned category of employees if it is decided by the concerned administrative authorities to retain such Schemes, after 54 OA.247/2018 necessary consultations or they may switch-over to the MACPS. However, these Schemes shall not run concurrently with the MACPS.
xxx xxx xxx
19. The MACPS contemplates merely placement on personal basis in the immediate higher Grade pay /grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. Therefore, no reservation orders/roster shall apply to the MACPS, which shall extend its benefits uniformly to all eligible SC/ST employees also. However, the rules of reservation in promotion shall be ensured at the time of regular promotion. For this reason, it shall not be mandatory to associate members of SC/ST in the Screening Committee meant to consider cases for grant of financial upgradation under the Scheme.
20. Financial upgradation under the MACPS shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there shall be no additional financial upgradation for the senior employees on the ground that the junior employee in the grade has got higher pay/grade pay under the MACPS.
21. Pay drawn in the pay band and the grade pay allowed under the MACPS shall be taken as the basis for determining the terminal benefits in respect of the retiring employee.
xxx xxx xxx
28 Illustrations:
A. (i) If a Government servant (LDC) in PB-I in the Grade Pay of Rs.1900 gets his first regular promotion (UDC) in the PB-I in the Grade Pay of Rs.2400 on completion of 8 Digitally signed by Hemant Anant Mahabal years of service and then continues in the same Grade Pay for further 10 years without any promotion then he Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 would be eligible for 2nd financial upgradation under the MACPS in the PB-I in the Grade Pay of Rs.2800 after completion of 18 years (8+10 years).
(ii) In case he does not get any promotion thereafter, then he would get 3rd financial upgradation in the PB-II in Grade Pay of Rs.4200 on completion of further 10 years of service i.e. after 28 years (8+10+10). 55 OA.247/2018
(iii) However, if he gets 2nd promotion after 5 years of further service in the pay PB-II in the Grade Pay of Rs.4200 (Asstt. Grade/Grade "C") i.e. on completion of 23 years (8+10+5years) then he would get 3rd financial upgradation after completion of 30 years i.e. 10 years after the 2nd ACP in the PB-II in the Grade Pay of Rs.4600.
B. If a Government servant (LDC) in PB-I in the Grade Pay of Rs.1900 is granted 1st financial upgradation under the MACPS on completion of 10 years of service in the PB-l in the Grade Pay of Rs.2000 and 5 years later he gets 1st regular promotion (UDC) in PB-I in the Grade Pay of Rs.2400, the 2nd financial upgradation under MACPS (in the next Grade Pay w.r.t. Grade Pay held by Government servant) will be granted on completion of 20 years of service in PB-I in the Grade Pay of Rs.2800. On completion of 30 years of service, he will get 3rd ACP in the Grade Pay of Rs. 4200. However, if two promotions are earned before completion of 20 years, only 3rd financial upgradation would be admissible on completion of 10 years of service in Grade Pay from the date 2nd promotion or at 30th year of service, whichever is earlier. C. If a Government servant has been granted either two regular promotions or 2nd financial upgradation under the ACP Scheme of August, 1999 after completion of 24 years of regular service then only 3rd financial upgradation would be admissible to him under the MACPS on completion of 30 years of service provided that he has not earned third promotion in the hierarchy."
13. A careful reading of the aforesaid clauses/provisions reflects the objective purpose of the MACPS, that is, that an employee should not remain stagnant in the same pay scale/Grade Pay for periods of 10, 20 or 30 years. In such cases, the employee would be entitled to financial upgradation to the immediate next higher Grade Pay, as Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' mentioned in Section 1, Part-A of the first Schedule to the Foxit PDF Reader Version: 2024.4.0 CCS RP Rules. Emphasis in clause 1 is on the expression "Grade Pay". Clause 2, similarly, states that the benefit under the MACPS is available where the eligible employee has not got regular promotion. In such cases, he/she will be given financial upgradation. However, such financial upgradation is not the same as a pay-scale/Grade Pay, which is applicable to the next promotional post in the hierarchy of the concerned cadre/ organization. 56 OA.247/2018
14. Clause 5 states that the promotions earned/financial upgradations granted under the ACPS in the past shall be taken into account, but where there has been a merger of pay scales/upgradation of posts recommended by the Sixth CPC, they shall be ignored for the purpose of granting upgradation under the MACPS. This has been explained by given examples A and B, which we have quoted above. At this stage, we would like to clarify that clause 5 will not be applicable to the cases in question. This is not a case of merger of pay-scales or upgradation of posts. On the other hand, this is a case wherein non- functional higher Grade Pay has been awarded to employees on completion of a certain length of service in the lower pay-scale/Grade Pay. We would, therefore, reject the contention of the respondents that, on implementation of the CCS RP Rules, upgrading the pay of Pharmacists and Superintendents, post the period of two or four years, would only amount to re-fixation of pay or revision of pay, as incorrect and, in essence, a wrong understanding of the CCS RP Rules.
15. Clause 6.2 specifically states that, where financial upgradation has been granted to the next higher pay- scale/Grade Pay in the hierarchy in the cadre as per the provisions of the ACPS, but as a result of the implementation of the Sixth CPC by grant of higher pay- scale/Grade Pay, the pay of such employees has been revised, such benefit will be given to the said employees. However, from the date of implementation of the MACPS, all financial upgradations would be done under the MACPS strictly in accordance with the hierarchy of the Grade Pay in the Pay Band, as notified vide CCS RP Rules. "Regular service" for the purpose of MACPS, commences from the date of joining the post in the direct entry grade on a regular service basis either on a direct recruitment basis or on an absorption/re-employment Hemant Anant Mahabal Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' basis.
Foxit PDF Reader Version: 2024.4.0
16. Clause 13 of the MACPS states that any time-bound promotion scheme, including in-situ promotion scheme, which is in force, may continue to be in operation for the concerned category of employees if it is decided by the concerned administrative authorities to retain such schemes. However, such schemes cannot run concurrently with the MACPS. The objective is clear. An incumbent eligible Government employee should not take the benefit of both - the timebound promotion scheme or 57 OA.247/2018 in-situ promotion scheme as well as the benefit of financial upgradation under the MACPS. We have specifically referred to clause 13 for, in our opinion, the financial upgradation which is granted, after two or four years of service, to Pharmacists or Superintendents, would indicate that they availed financial upgradation. In their cases, because of service conditions, the Government had thought it proper to grant them such financial upgradation after they completed two or four years of service in the lower pay-scale/Grade Pay. It is not the intention of the Government to ignore the said upgradation under the CCS RP Rules. If we do so, we would be granting them additional benefits beyond what was envisaged and stated in the MACPS. The Revised Pay Rules, including a grant of financial benefits, and the MACPS are not two watertight or separate compartments, each conferring independent benefits without reference to the other. Grant of financial upgradations as well as promotions are to be duly accounted for and taken into consideration in the MACPS.
17. Clauses 19 and 20 specify that the financial upgradation is purely personal and has no relevance to the seniority position. Grade Pay/grant of financial benefits shall not amount to actual or functional promotion of the employees concerned. Roster point etc. will not be applicable.
18. Clause 21 states that the pay drawn in the Pay Band and Grade Pay allowed under the MACPS shall be taken as the basis for determining the terminal benefits in respect of the retiring employees.
19. The illustrations in Clause 28 clearly affirm the view we have taken and are in accord with what we have stated above.
Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER=
20. In view of the aforesaid position of the MACPS, we fail to understand how we can ignore the financial 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 upgradation, which was granted upon completion of two or four years of service in the posts of Pharmacist or Superintendent, as the case may be, for the purpose of deciding as to whether or not the Government employee would be entitled to the next financial benefit under the MACPS. To ignore the financial upgradation granted on completion of two or four years of service as Pharmacists or Superintendents, would be contrary to the intent and purpose of the scheme, the language employed as well as 58 OA.247/2018 the examples/illustrations which have been given. No doubt, certain anomalies may arise because of the fact that the ACPS and MACPS did operate during different periods; the nature of financial upgradations was different; and the time periods specified for financial upgradation were different, but this cannot be a ground and reason to re-write or ignore the expressed language of the MACPS and the intent and purpose behind the scheme. Read in this light, we have no difficulty in accepting the present appeal and setting aside the impugned judgments. Hence, we allow the present appeals.
21. In other words, the respondents would be entitled to the benefits of the MACPS only after taking into consideration all the financial upgradations earned by them, in terms of the CCS RP Rules. Financial upgradations under the said Rules have to be accounted for and will be treated as financial upgradations earned for the purpose of reckoning the 10-year intervals and the three assured financial upgradations, in terms of Grade Pay, under the MACPS."
(Emphasis supplied)
36. We further find that the Mumbai Bench of this Tribunal in O.A.No.210/2020 and O.A. No.18/2022 in the case of Kumar S. Krishnamurthy & Others vs. Union of India & Others wherein the applicants of the same respondent department i.e. Central Board Indirect Taxes were involved Hemant Anant Mahabal Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 has decided the similar issue. It will be helpful to extract herein the findings of the Tribunal in the above case as under:-
"72..... Para 8.1 does not say anything different than what the Apex Court has propounded. Rather, it is in tune with the observations recorded in the case of 59 OA.247/2018 N.M. Raut (supra). Para 8.1 says that the grade pay of Rs.5400 in PB-2 and PB-3 shall be treated as separate grade pay for the purpose of MACP. It has also ruled that upgradation cannot be a part of the pay structure. In these circumstances, the contentions of the applicants in this respect deserve to be rejected.
73. It is true that para 8.1 of the MACPS was not before the Supreme Court and in para 26, Supreme Court has observed that it has not commented on the legality of para 8.1 of MACPS pending in any litigation.
74. What para 8.1 says that upgradation in PB-2 and PB-3 shall be treated as upgradation for the purpose of MACP. The same issue has been dealt with by the Supreme Court after considering the entire scheme of MACP although without specific reference to para 8.1 of the MACPS. Para 8.1 states the legal position as explained in the case of N.M. Raut (supra).
75. The applicant has reproduced in para 4.15 of the OA, the relevant corresponding scales as per Section 1, Part A of the first schedule of the CCS (Revised Pay) Rules, 2008 as under:-
5th Pay Commission 6th Pay Commission
5th PAY PAY SCALE PAY BAND PAY BAND RANGE GRADE PAY
S-14 7500-250- PB-2 9300-34800 4800
12000
Digitally signed by Hemant Anant Mahabal
S-15 8000-275- PB-2 9300-34800 5400
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 13500 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30'
Foxit PDF Reader Version: 2024.4.0
NEW 8000-275- PB-3 15600-39100 5400
SCALE 13500 (Group A
Entry)
S-16 9000 PB-3 15600-39100 5400
S-17 9000-275-9550 PB-3 15600-39100 5400
60 OA.247/2018
S-18 10325-325- PB-3 15600-39100 6600
10975
S-19 10000-325- PB-3 15600-39100 6600
15200
S-20 10650-325- PB-3 15600-39100 6600
15850
S-21 12000-375- PB-3 15600-39100 7600
16500
S-22 12750-375- PB-3 15600-39100 7600
16500
S-23 12000-375- PB-3 15600-39100 7600
18000
76. From this chart, it is seen that in Level 8 in PB-2 in scale of Rs.9300-34800, GP is 5400. In PB-3 for the scale of Rs. 15600-39100, GP is 5400. This indicates that after PB-2, there is rise in pay scale to 15600-39100 in PB-3. In the case of A. Praveen Kumar s/o Late A. Choykutty versus Union of India & Ors. in OA No.180/00005/2016 dated 06th day of April, 2017 (CAT, Ernakulam /Bench), it has been held thus:-
"As per MACP Scheme Clause 8.1 the Grade Pay of Rs.5400/- in two Pay bands viz. PB2 and PB3 will be treated as separate Grade Pays for the purpose of MACP upgradation. The benefit of applicants, GP being the same, is in moving from PB2 Rs.9300-34800 to PB3 Rs.15600-39100. Hence a financial benefit is already inbuilt in the scale of the higher pay band, treating the Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= GP of Rs.5400/- in PB2 and PB3 as distinct and separate grade pays for the purpose of MACP upgradation. Rule 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 8.1 of Annexure-I of MACP Scheme order dated 19.5.2009 holds, and any further or additional interpretation is not necessitated."
77. This shows that there is enhancement in the salary. A financial benefit is already inbuilt in the scale of the higher pay band. Therefore, there is no force in the contention of the applicants that there cannot be any upgradation if grade pay of Rs.5400/- is treated as 61 OA.247/2018 part of MACP and that there cannot be upgradation from Rs.5400/- to 5400/-. As held in M.V. Mohanan Nair (supra), K. Sudheesh Kumar (supra) and N.M. Raut (supra), the higher grade pay should be in the same pay band and not in higher pay band or higher promotional post. If it is done so, they would be getting additional benefit i.e. grade pay of Rs.5400 and also the upgradation in higher pay band i.e. PB-3 for the scale of 15600-39100, Grade Pay 6600 which is impermissible as held by the Supreme Court in the aforesaid decisions.
78. Another argument advanced is that Ministry of Finance has no power to alter the Government Resolution dated 29th August, 2008. It is true that Ministry of Finance being a lower authority cannot alter or amend the Government Resolution dated 29th August, 2008. The question is whether para 8.1 of the MACP has altered para 4.1(iii) of the Government Resolution. The said para states that the Grade Pay shall change at the time of financial upgradation under the scheme of MACP. It was argued that in case the contentions of the respondents are accepted, there will not be any change in the upgradation under MACPS.
79. There is no substance in the arguments of learned counsel for the applicants. As indicated above, MACPS contemplates higher grade pay in the same pay band and not higher grade pay in the next pay band or in the promotional post. What para 8.1 states is that consequent upon the implementation of 6th CPC's recommendations, grade pay of Rs.5400 is Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 now in two pay bands viz., PB-2 and PB-3. The grade pay of Rs. 5400 in PB-2 and Rs. 5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme. The words "grade pay of Rs. 5400 in PB-2 and Rs. 5400 in PB-3 shall be treated as separate grade pays for the purpose of grant of upgradations under MACP Scheme" are the centre of controversy. These words 62 OA.247/2018 do not change the scope of para 4.1(iii) of the Government Resolution dated 29th August, 2008. Para 8.1 simply treats grade pay of Rs. 5400 in PB-2 and Rs. 5400 in PB-3 as separate grade pays for the purpose of upgradations under MACP Scheme. As indicated earlier, in the case of N.M. Raut (supra), Supreme Court has held that non-functional and other upgradations shall be treated as part of MACPS. Therefore, these words do not in any way affect the operation of para 4.1(iii) of MACPS.
80. It was further argued that vide letter dated 02nd January, 2023, the respondents have clarified that grant of NFU to Superintendents have clarified that grant of NFU to Superintendents is delinked with promotion. The said letter reads as under:-
"To The Commissioner, CGST Ghaziabad, CGO Complex-2, Kamla Nehru Nagar, Ghaziabad - 201 002 Subject:-Withholding of Payment of Gratuity and erroneous fixation of Pension and Gratuity - Case of Shri Vinod Kumar Sharma - Superintendent (Retd), Commissionerate Ghaziabad - reg.
Sir,
Please refer to your office letter
C.No.II(22)34/Accounts/Pension/VKS/GZB/20-21/2773 dated 31.10.2022 wherein it is stated that Sh Vinod Kumar Sharma is not eligible for grant of NFU in Grade Hemant Anant Digitally signed by Hemant Anant Mahabal DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= pay of Rs.5400/- in PB-II as he has already been granted 3 financial upgradations.
44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
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2. It is submitted that Board vide letter dated 10.08.2017 has clarified that grant of NFU to Superintendent s in the Grade Pay of Rs.5400/- in PB-2 (now level9) after four years of regular service in the Grade pay of Rs.4800/- is not linked with number of promotions given earlier. Hence, Shir V.K. Sharma is eligible for NFU, despite the fact that he has already been granted three promotions/financial upgradations.
However, his case to be considered for grant of NFU if 63 OA.247/2018 he has completed 4 years regular service in the grade pay of Rs.4800/-
3. This has the approval of the Competent Authority.
Yours faithfully, Sd/-
(Avneesh Pratap Singh) Under Secretary to the Government of India"
81. It was argued that the non-functional upgradation has been delinked with promotion and Shri V.K. Sharma has been made eligible for non- functional upgradation. It is the contention of the respondents that grade pay is not linked with promotions. But this letter is contrary to what the respondents have alleged in their reply.
82. This submission cannot be accepted. On perusal of this letter what is noticed is that grant of non-functional upgradation is not connected with the promotions given earlier. Even if any employee has received promotion earlier, and he has served in grade pay of Rs.4800 for four years, in that case also, he is entitled to non-functional upgradation. As per 6th CPC, non-functional upgradation is granted when a government servant has spent four years regular service in grade pay of Rs. 4800. It has no connection with the promotions earlier earned. Therefore, the submissions made by the respondents in their reply are not contrary to the letter dated 02nd January, 2023.
83. For the aforesaid reasons, no substance is Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 found in both the Oas. In this view of the matter, points raised in Para 19 of this judgment are answered as under:-
(i) MACP can be granted in the same Grade Pay i.e. from Grade Pay of Rs.5400/- to Grade Pay of Rs.
5400/-.
64 OA.247/2018(ii) Grant of non-functional grade has to be treated as financial upgradation under the MACP Scheme.
(iii) Para 8.1 of MACPS and FAQ No. 16 issued by DoPT is legal and proper.
(iv) DoPT OM has not dislodged policy decision of the Government.
(v) Persons receiving three promotions /MACP leading to their placement in GP of Rs.4800/- and subsequently, granted Non-Functional Grade of Rs. 5400/- can be stated to have received four promotions /financial upgradation.
84. To conclude, for the foregoing reasons, both the Oas have no substance. Hence, both the OA Nos. 210/2020 and 18/2022 are dismissed with no order as to costs."
37. Thus, the issue is no more res-integra. Since the similar issue has already been decided by the Co-ordinate Bench of this Tribunal in OA.Nos.210/2020 and 18/2022 in favour of the respondents, there is no ground for us to take a different view.
Since the applicant was already granted 3 financial upgradations i.e. on 09.08.1999, 1st ACP, on 03.08.2006, 2nd ACP in the Grade Digitally signed by Hemant Anant Mahabal Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Pay of Rs.4800/- and again 3rd financial upgradation in the Grade Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0 Pay of Rs.5400/-, we are of the view that the Grade Pay of Rs.6600/- granted on 21.01.2013 was rightly withdrawn. Therefore, we do not find any infirmity in the impugned orders. 65 OA.247/2018
38. The O.A. is being devoid of merit, is liable to be dismissed and is accordingly dismissed. There shall be no order as to costs.
39. Pending MAs, if any, also stand disposed of accordingly.
(Umesh Gajankush) (Shri Krishna)
Member (J) Member (A).
H
Digitally signed by Hemant Anant Mahabal
Hemant Anant DN: C=IN, O=Personal, T=3273, OID.2.5.4.65=cd2ae49d8bf44fb5ab2d290f61a2b198, Phone= 0df695a144e63d3cd136c520255a48d230ca63775b412a272123c7dc7a126121, PostalCode= 400602, S=Maharashtra, SERIALNUMBER= 44ef8f218df6316dce768bd9807f522585fec3a6ac1fd6a02290960724113109, CN=Hemant Anant Mahabal Mahabal Reason: I am the author of this document Location:
Date: 2026.03.06 13:05:28+05'30' Foxit PDF Reader Version: 2024.4.0