This is how this issue could be explained – The matter which is apparent from the straight interpretation of CCS (Revised Pay) Rules, 2008 has at last been settled after almost 3 years on account of wrong interpretation at PAO and field level.
After a great struggle by certain individual officers in an attempt to make the administration to interpret the pay rules in a correct manner, which also include a legal battle before CAT, Ministry of Finance, Department of Revenue, Central board of Excise and Customs has finally accepted the officers plea and decided to allow Grade Pay of 5400 in PB-3 for the Group B Officers (Superintendents of Customs, Superintendent of Central Excise and Appraisers) who were fixed with pre-revised Scale of pay of 8000- 275-13500 as financial upgradation in the promotional hierarchy under ACP Scheme on or before 31.08.2008
This decision has been communicated in the letter F.No: A.23011/29/2010-Ad-IIA dated 20.05.2011
The decision of CBEC in this matter is reproduced below:
I am directed to say that the board is in receipt of various reference from the cadre controlling chief Commissioners/Directors General seeking clarification on grant of grade pay of Rs.5400 in PB-2 or PB-3 on financial upgradation under ACP Scheme. Some individual officers have also approached Court of law for the redressal of their perceived Grievances in this regard
2. The matter has been examined in the board in consultation with the Department of Expenditure/Department of Personnel and Training. Prior to introduction of MACP Scheme, the benefits of 1st /2nd financial up-gradation under The ACP Scheme of August 1999, used to be granted in the promotional hierarchy. The ACP Scheme came into operation w.e.f 9.8.1999. The eligible officers were being allowed the benefits of ACPS w.e.f 9.8.99 or completion of 12 and 24 years of regular service. The Benefits of ACP Scheme of August 1999 had been allowed till 31.08.2008. However, as per the recommendations of 6th CPC, three financial up-gradations have been allowed under MACPS w.e.f 1.9.2008 or on completion of 10,20 and 30 years of continuous regular service. The upgradation is granted in the immediate next higher grade pay as prescribed in the CCS (RP) Rules, 2008. If an officer gets promotion in the normal course during the relevant period that would be taken into account while determining his eligibility for grant of MACP at a particular stage i.e 1st,2nd, 3rd.
3. The new pay structure on the recommendations 6th CPC has been made effective w.e.f 1.1.2006 vide department of expenditure’s notification dated 29.08.2008. the benefits of financial upgradation in the promotional hierarchy under the ACPS had however,been allowed in the revised pay structure during the period between 01.01.2006and 31.08.2008 in terms of clarification given on point of doubt No:3 of Annexure of DOPT’s Om dated 9.9.2010.
4. Further, the benefits of ACPS of August 1999 had been allowed till 31.08.2008 and only functional promotion(s) is/are counted for the purpose of scheme. Besides, there is no provisions for counting ‘Non-functional scale’ for the purpose of ACP scheme.
5. In view of above facts and circumstances, there would be no effect on grant of ‘Non-functional Scale’ in PB-2 with grade pay of Rs.5400 during the period between 1.1.2006 to 31.08.2008, as the same is not counted under ACPS and it would not be offset against financial upgradation under scheme. However, in terms of para 8.1 of Annexure of MACPS financial up-gradation granted in the grade pay of Rs.5400 in PB-2 and PB-3 would be counted separate up-gradation and would be offset against financial upgradation under the scheme.
6. The Hon’ble CAT, Madras Bench vide its judgment and order passed on 9.3.2011 in Bunch of O.As No: 821,930 931 and 1098 of 2010 filed by Shri.S.Ramachandran, Superintendent of Central Excise (Retd) and Others Vs UOI and others has inter-alia held that the applicants are entitled to have the pay scale of Pay Band 3 i.e Rs.15600-39100 with Grade pay of Rs.5400 as the replacement pay scale to the pre-revised scale of Rs.8000-275-13500 which was granted to them as financial upgradation under the ACP Scheme. i.e the scale of pay of the post in the promotional hierarchy.
7. In view of the facts and circumstances explained above, it is hereby clarified that the officers working in the offices under the Central Board of Excise and Customs (CBEC) who have been granted the pre-revised scale of pay of Rs. 8000-275-13500 as financial upgradation in the promotional hierarchy under the ACP Scheme on or before 31.08.2008, may be granted the pay scale in Pay Band 3 i.e Rs.15,600-39100 with grade pay of Rs.5400 as per the 6th CPC replacement pay.