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8. That, after the implementation of MACPS, the Office of Principal Chief Controller of Accounts requested the DOPT to clarify as to whether the grant of Grade Pay of Rs.5400 in PB-2 along with the benefit of one increment @ 3% may be treated as ACP or not. Responding to said query, the DOPT clarified vide D.No.25/624001/US(D)/2010 dated 21.07.2010 that "the benefit of non-functional grade granted to the Superintendent (Group-B) officers after completion of 4 years would be treated/viewed as upgradation in terms of Para 8.1 of Annexure-I of OM dated MP-6500-2019, MP-6502-2019, MP-6503-2019, MP-6504-2019, MP-6530-2019, MP-6531-2019, MP-6535-2019, MP-6561-2019, MP-6564-2019, MP-6578-2019 & MP-6579-2019 19.05.2009 and the same would be off set against one financial upgradation under MACPS".

17. These benefits were later decided to be withdrawn vide decision communicated vide Letter No.F.No.A-23011/25/2015- MP-6500-2019, MP-6502-2019, MP-6503-2019, MP-6504-2019, MP-6530-2019, MP-6531-2019, MP-6535-2019, MP-6561-2019, MP-6564-2019, MP-6578-2019 & MP-6579-2019 Ad.IIA dated 20.06.2016 issued by the Central Board of Excise and Customs, which is reproduced for ready reference :
F.No.A-23011/25/2015-Ad.IIA Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs **** North Block New Delhi, the 20th June 2016 Subject: Clarification of MACP - Grant of 3 rd MACP to the Superintendents in CBEC who were granted non- functional grade pay of Rs.5400/- in Pay Band-2 - Reg. Sir/Madam, I am directed to say that the Board is in receipt of various references/representations from field officers/officers seeking clarifications on the issue of grant of 3rd financial upgradation under MACP Scheme to Superintendents who were granted non functional grade pay of Rs.5400/- in Pay Band 2.
2. The matter regarding counting of non functional Grade pay of Rs.5400/- in Pay Band-2 to the Superintendents as one financial upgradation for the purpose of MACP Scheme has been re-examined in consultation with Department of Personnel & Training (DoP&T). DoP&T has now advised in consultation with Department of Expenditure that the grant of non functional grade pay of Rs.5400/- in PB-2 to the Superintendents needs to be counted as one financial upgradation for the purpose of MACP Scheme. DoP&T has drawn attention to the specific provision in Para 8.1 of MP-6500-2019, MP-6502-2019, MP-6503-2019, MP-6504-2019, MP-6530-2019, MP-6531-2019, MP-6535-2019, MP-6561-2019, MP-6564-2019, MP-6578-2019 & MP-6579-2019 Annexure-1 of O.M. No.35034/3/2008-Estt.(D) dated 19 th May, 2009 read with FAQ No.16 (copy enclosed) which indicate that the Non functional scale in grade pay of Rs.5400/- in PB-2 is to be treated as a financial upgradation under MACP Scheme. DoP&T has also advised that court cases including the case of R. Chandrasekeran may be agitated/defended as per MACP Scheme vide DoP&T O.M. dated 19/05/2009.
5. This issues with the approval of Chairman, CBEC.

Yours faithfully (A.K. Qasim) Deputy Secretary to the Government of India

18. The order dated 20.06.2016 and consequential action thereof came to be questioned by the applicants before the Tribunal on the ground that they were rightly granted the 3rd upgradation under MACPS in the pay scale of Rs.15600-39100 + GP of Rs.6600/- as MP-6500-2019, MP-6502-2019, MP-6503-2019, MP-6504-2019, MP-6530-2019, MP-6531-2019, MP-6535-2019, MP-6561-2019, MP-6564-2019, MP-6578-2019 & MP-6579-2019 the grant of non-functional grade to the applicants does not involve any kind of higher assignment and charge and were not granted higher pay scale as would tantamount to promotion. It was urged that the grade pay of Superintendent and non-functional grade is same; therefore, cannot be treated as promotion.