Why Financial up-gradation after 4 years is not ACP?

Under Part B and C of CCS Revised Pay Rules, 2008, the Employees of certain Group B posts in various departments were fixed with the grade pay of Rs.4800/- and after completion of 4 years of service in the those posts, they are eligible for Non-Functional financial up gradation to the Grade pay of Rs.5400/-.  The following Posts carry the said Non-Functional Financial Up gradation.

Name of Post	Pre-revised Pay Scale	Pre-revised Pay Scale taken for Revised Pay under 6CPC	Pay Band after 6CPC	Grade Pay
Section Officer/PS/Equivalent	6500-10500	7500-12000	PB-2	4800
	After 4 Years	8000-13500	PB-3	5400
Administrative Officer Grade II/Sr.PrivateSecretary/Equivalent	7500-12000	7500-12000	PB-2	4800
	After 4 Years	8000-13500	PB-2	5400
Superintendent (Posts)	6500-10500	7500-12000	PB-2	4800
	After 4 Years	8000-13500	PB-2	5400
Section Officer (Excluded)	7450-11500	7500-12000	PB-2	4800
		8000-13500	PB-3	5400
IncomeTaxOfficers/ Superintendent, Appraisers Etc (Customs and Central Excise)	6500-10500	7500-12000	PB-2	4800
	After 4 Years	8000-13500	PB-2	5400
Entry grade in DANICS, DANIPS, Pondicherry Civil Service and Pondicherry Police Service	6500-10500	7500-12000	PB-2	4800
	After 4 years	8000-13500	PB-3	5400

DOPT's stand on non-functional financial up-gradation:

Now, the issue is whether the said financial elevation (up gradation) given after 4 years of service in the pre-revised pay scale of Rs. 7500-12000, is to be considered as a promotion or an assured career progression?  The answer should be a big No.  However, DOPT has already taken a different stand on this issue and decided that this financial up-gradation should be counted for three assured career progression under MACPS.

Check the following GConnect article for the stand taken by DOPT in this regard.

Non-Functional Financial Up-gradation is ACP-DOPT clarifies

Why DOPT is wrong?

For discussion in this regard the non-functional financial up-gradation of Income Tax Officers, Superintendent, Appraisers Etc (Customs and Central Excise) is taken up.

Income Tax Officers and Superintendents of Central Excise and Customs are granted non-functional scale i.e. pre-revised scale of Rs.8000 – 275 – 13,500 and fixed in  Grade pay of Rs.5,400/- in PB2 after completion of 4  years in the grade of Superintendent in terms of Ministry’s  letter F.NoA-26017/98/2008-Ad.IIA dated 21.11.2008 with effect from 01.01.2006.

Next promotional cadre for these posts is Assistant Commissioner, which is a Group-A post in the pre-revised pay scale of Rs.8000-13,500 (S-15), corresponding to pay band PB-2 of Rs.9300-34800 & PB-3 of Rs.15600-39100 with a Grade Pay of  Rs.5400/-.

Now the Question arises as to:-

• what will be the benefit under MACPS or ACP for an employee, who has been granted the grade pay of Rs. 5400/- after completion of 4 years of service as per Part B and C of  CCS Revised Pay Rules, 2008, as mentioned above?
• Whether the Non-functional up gradation of grade pay from Rs. 4800/- to Rs.5400/- after 4 years should be accounted as a promotion and the benefit of ACP/MACPS can be denied to concerned officers?

Answers for these questions are apparent from the straight interpretation of CCS Revised Pay Rules, 2008 and related office memorandums.

What CCS Revised Pay Rules, 2008 says?

The Part-C, Section-II of the CCS (Revised Pay) Rules, 2008, under Heading ‘Ministry of Finance, Department of Revenue, provides the subject financial up gradation as follows.

Department of Revenue
9	Income Tax officers/Superintendent, Appraisers etc.(Customs & Central Excise)	7500-12000	7500-12000	PB-2	4800	7.15.17
			8000-13500 (after 4 years)	PB-2	5400

From the above Sl.No.9, inference can be drawn that the officers of Income Tax /Superintendent, Appraisers etc.(Customs & Central Excise), who are Group B remain Group B in spite of non-functional up gradation. If it was considered to be promotion to Group A, the description above could have been different and specifically mentioned. 

What 6CPC Resolution says?

While considering the recommendation of the sixth pay commission regarding Group B officers the Govt.’s observation in Resolution page 31 sub Para  1 (x) e, is as follows.

“Group B officers of the Department 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 of Rs.4800 in PB-2.”

From above the inference can be drawn that the Govt. has accepted that officers remain Group B in spite of non-functional up gradation.

What 6cPC report says?

To analyze the matter the legislative intend has to be looked into in the Report of Sixth Pay Commission, March-2008. The relevant extract is reproduced as under:

Para No. 2.2.19 (iii):

“PB-2 pay band has 4 distinct grades (including the pre revised pay scale of Rs.8000-13500 for Group B posts) represented by 4 different grade pay.”

In the above Para it is clearly mentioned that pre revised scale of Rs.8000-13500 in PB-2 is included for the Group B posts and it can be construed to be meant for Group B posts only.

Para No. 2.2.19 (x):

“The scale of Rs.8000-13500 is the entry grade for the Pay for Group A posts for which the running Band PB-3 has been recommended .Many Group B posts had been extended the scale of Rs.8000-13500 even though these continued to be Group B posts.  All such Group B posts shall now be placed in the running band PB-2 along with grade of Rs.5400.To insure that existing parity in terms of pay scale of these posts vis-à-vis the entry scale of Group A posts is not disturbed , the same grade of Rs.5400 has been prescribed.”

• From the above it is evident that Sl.No.16 to the table appearing at page 34 Part I-Sec.1 of the Resolution dated 29.08.2008 showing the running band PB-2 is meant for Group B posts i.e. Income Tax officers/Superintendent, Appraisers etc.(Customs & Central Excise) which is given after four years in Grade Pay of Rs.4800/-.
• To ensure that existing parity in terms of pay scale of these Group B posts vis-à-vis the entry scale of Group A posts is not disturbed, a new entry scale has been prescribed vide Sl.No.17 to the table appearing at page 34 PartI-Sec.1of the Resolution dated 29.08.2008 showing the running band PB-3. Since promotional cadre in the hierarchy is Assistant Commissioner which is Group A post the Inspectors/Superintendents on getting 2nd ACP are eligible for a running band PB-3.

What MACPS order says?

It is in this context Para 8.1 of Annexure-l of MACPS issued under F.No.35034/3/2008-Estt. (D) dated 19th May, 2009 could be read with , which is reproduced as under:

“Consequent upon the implementation of Sixth CPe's recommendations, grade pay of Rs. 5400 is 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 up gradations under MACP Scheme.”

From above it is clear that even though higher/promotional scale is extended to Group B officers after four years they still remain  as Group B officers fixed in Pay Band PB-2 with Grade Pay Rs.5400/-and they are eligible for 2nd ACP/ MACP which has to be fixed in Pay Band PB-3.

Why to compare Posts in other Organizations?

The financial up gradation within the Group B is accorded by the Pay Commission on account of demand for higher pay scale pending since long for the duties of higher nature performed by the respective cadre compared to analogous post in other organization [refer Para No.3.1.9, Para No.3.1.14, Para No.7.6.14, Para No.7.15.5, Para No. 7.15.17, Para No.7.19.51, Para No.7.19.65, Para No.9.1.10 etc. in the Report of Sixth Pay Commission, March-2008]. The Post of the officers are therefore up graded after 4 years in Grade pay of Rs.4800/- and the decision is conscious one. Since it is given within Group B post it cannot be termed as promotion.

Less Promotional avenues for Central Excise Inspectors

It is matter of regret that an officer appointed as an Inspector retires at only one promotion in his whole life. And therefore the MACP Scheme needs to be viewed as a ‘Safety Net’ to deal with the problem of genuine stagnation and hardship faced by the employees due to lack of adequate promotional avenues.

Therefore, the financial up gradation within the Group B after four years of service cannot be considered as promotion or MACP.