Wednesday, May 14, 2008

itef circular No. 39/2008

Manishinath Bhawan
A/2/95 Rajouri Garden
New Delhi. 110 027
Phone: 2510 5324
Cell 98110 48303
Dated: 14th May, 2008

Dear Comrade,

The meeting of the Co-ordinating Committee of Federations and Associations in the Department Revenue met on 12th and discussed the formulations to be made presented before the Secretary Revenue on matter concerning the 6th CPC recomendations. On the basis of the consensus arrived at in the said meeting, amemorandum was prepared. The same was subjected to discussion with the Secretary Revenue yesterday i.e. 13th May,2008 The meeting was presided over by the Secretary Revenue and was attended by the Chairman and Member (Personnel) of the CBDT and CBEC. Besides, the Additional Secretary (Revenue) and the Director (HRD) CBDT and other officials attended the meeting. We send herewith a copy of the memornadum submitted whcih contains the points discussed at the meeting. The ITEF was represented by Com.KKN Kutty and Com. Baswanand.

With greetings,

Yours fraternally,

Secretary General.



Manishinath Bhawan A-2/95 Rajouri Garden,

New Delhi. 110 027.

Phone: 2510 5324

Fax: 25105324. Mobile: 98110 48303

Memorandum presented to the Secretary Revenue on 13th May, 2008

CO-ORDINATING COMMITTEE OF FEDERATIONS IN THE DEPARTMENT OF REVENUE [C-O-C (REVENUE)] is comprised of the following service organizations representing the officers and staff of the three Departments of Income Tax, Central Excise and Customs coming under the Department of Revenue, Ministry of Finance:-

1. Income Tax Gazetted Officers Association

2. Income Tax Employees Federation

3. All India Association of Central Excise Gazetted Executive Officers

4. All India Central Excise Inspectors' Association

5. All India Central Excise & Customs Ministerial Officers' Federation

6. All India Customs & Central Excise Gr. D Officers' Federation

7. All India Customs Preventive Services Federation

8. All India Customs Appraisers Officers' Federation

9. All India Customs Preventive Superintendents' Federation

10. All India Customs Ministerial Officers Federation

11. All India Customs Group "D" Officers' Federation

12. All India Federation of Central Excise & Customs Telecommunication

13. Customs Departmental Canteen Association

As evident the C-O-C (REVENUE) represents all major Gr. B, C, D cadres and promotee officers in Gr. A cadre in the Departments of Income Tax, Central Excise and Customs representing more than one lakh Officers and staff in the Department of Revenue.

In the perspective of recommendations made by the 6th CPC, we present below our submissions on behalf of the organizations comprised in the C-O-C (Revenue) with the expectation that you will favourably consider and recommend the acceptance thereof by the Committee of Secretaries.

Rajesh Menon S.P. Siddhanta K.K.N.Kutty

Joint Convenor Joint Convenor Joint Convenor

Group-D Employees:

a) Matriculates

As per the 6th CPC recommendations they are to be placed in PB-1 with Grade Pay of Rs.1,800/-.

b) Non-Matriculates

They are also to be placed in PB-1 with Grade Pay of Rs.1,800/- as per the 6th CPC receommendations. Appropriate training is to be imparted to the non-matriculates within a period of three months before induction into this grade.

CBDT & CBEC are to organise this training within the stipulated period.

Staff Car Drivers:

They are presently in four grades viz. Ordinary Grade with scale of Rs.3050-4590, Grade-II of 4000-6000, Gade-1 of 4500-7000 and Special Grade of 5000-8000.

While the first three grades will be placed in PB-1 with grade pay of Rs.1900, 2400 and 2800 respectively, the special grade will be assigned PB-2 with a grade pay of Rs.4,200/-.

Since the Government has taken the decision not to purchase vehicles but to hire them, the staff car drivers will become progressively a dying cadre. They are to be integrated in the main stream cadres of the concerned departments. Depending upon the educational qualification and on imparting training they may be permitted to be absorbed in various other cadres.

Notice Servers:

The Sixth CPC has assigned them an upgraded pay scale on par with the constables of CPMO. They were in the pay scale Rs.3050-4590. They are now assigned the pay scale of Rs.3200-4900. As per the 6th CPC recommendation they are to be placed in PB-1 with grade pay of Rs.2,000/-.


Sepoys are employed both in the Central Excise and Customs Departments. They are uniformed employees and their functions are identical to the functions of the constabulary in CPMO and other police organizations. They are presently in the pay scale of Rs.2750-4400 corresponding to PB-1 with grade pay of Rs.1800/-. The Constables in the CPMO were assigned the pay scale of Rs.3050-4590 by the 5th CPC on the ground that the recruitment qualification for CPMO Constables was matriculation, whereas the Sepoys in the Central Excise and Customs Department were non matriculates. The Federation of Sepoys both in Central Excise and Customs Dept. had been continuously harping on the need for the change in Recruitment Rules for the past 12 years without any positive action from the CBEC.

Now the 6th CPC has assigned replacement scale of Rs.3200-4900 to the CPMO Constables and the Sepoys of CBEC has been given a depressed pay-scale of Rs.2750-4400. Most of the Sepoys are presently Matriculates and above. We therefore suggest that those who are presently matriculates may be placed in the P.B.-1 and Grade Pay applicable the scale of Rs.3200-4900 i.e. PB1 with grade Pay of Rs.2000. Those who are non-matriculates, they are also to be placed in PB-1 with Grade Pay of Rs.2000, provided they had completed three years of service as Sepoys. The CBEC may be asked to immediately revise the recruitment rules of Sepoys to bring them on par with the Constables in CPMO, which has even otherwise become necessary as per the extant recommendation of the 6th CPC. Those who are non-matriculates and are yet to complete the residency period of three years may be given training to upgrade them to PB 1 with grade pay of Rs.2000 within a period of 3 months.

Lower Division Clerks:

The number of Lower Division Clerks in Incometax and Central Excise Department are a few in number. They were in the scale of pay of Rs.3050-4590 and have been assigned the replacement PB-1 with grade pay of Rs.1900. They were actually on par with the Constables in the CPMO and Notice Servers of Incometax Department, having the same scale of pay. The 6th CPC has disturbed this horizontal relativity by assigning a higher scale of pay of Rs.3200-4900 to both Notice Servers and Constables. In order to remove the anomaly the LDCs are to be assigned the replacement PB-1 with grade pay of Rs.2000.

Tax Assistants / Steno Grade-III:

They are presently in the scale of pay of Rs.4000-6000. The recruitment qualification prescribed for Tax Assistants is graduation with data entry speed of 8000 character depression. The 6th CPC vide its recommendation in Para 3.1.12 and 3.1.15 has stipulated that the recruitment in Government service hereafter will have to be in the grade of Executive Assistants. Thus there cannot be any further recruitment in this cadre. It would therefore, become necessary that those who are graduates among the Tax Assistants are upgraded and placed in the PB-2 with grade pay of Rs.4200. Similarly those who have completed the residency period of three years (the period stipulated by the Department of Personnel for promotion from 4000-6000 to Rs. 5000-8000) may also be placed in PB-2 with grade pay of Rs.4200. Those who are not graduates and those who have not completed the requisite residency period of three years may have to be presently placed in the replacement PB-1 with grade pay of Rs.2400, to be upgraded after the completion of requisite residency period.

Senior Tax Assistant / Office Superintendent of Incometax Stenographer Grade-II and Stenographer Grade-I:

The Senior Tax Assistant and Stenogrpaher Gr.II are presently in the scale of pay of Rs.5000-8000 and Office Superintendents and Stenographer Grade-I are in the pay scale of Rs.5500-9000. These grades have been merged and are placed in the PB-1 with grade Pay of Rs.4200. Office Superintendents and Stenographer Grade-I are the promotional grades for the feeder cadres of Senior Tax Assistants and Stenographer Grade-II. As per the recommendation of the 6th CPC they will be placed in PB-2 with grade Pay of Rs.4200. However, it is to be mentioned that office superintendents are the supervisory grade and the merger of the grades of Senior Tax Assistants and Office superintendents into one singe cadre will result in the depletion of the supervisory grades in the Department. It is therefore, necessary to functionally assess the required number of posts in supervisory grades and upgrade that number of the posts of Office Superintendents to the grade of Administrative Officers Gr.- III.

In the case of DOS of Central Excise and Customs Department (which is analogous to the cadre of Office Superintends in other Central Government offices) a separate memorandum has been submitted.

Inspectors / Preventive Officers / Examiners:

They were in the scale of pay of Rs.6500-10500 as in April, 2004 as per Government's decision to bring them on par with the Inspectors of IB and CBI etc. The Inspectors of IB and CBI have been placed in the pay scale of Rs.7450-11500 i.e. PB-2 with grade pay of Rs.4600. This apart, Inspectors, Office Superintendents and Sr. TAs will now be in the same PB and grade pay as per 6th CPC recommendation. Since Office Superintendents and Sr. TAs are feeder cadres, the Inspectors are to be placed in PB-2 with grade pay of Rs.4600 as in the case of Inspectors of IB and CBI as stipulated in para 2.21(v) of the report. This will automatically remove the anomaly.

We might also draw your kind attention to the fact that Inspectors of IB and CBI and the Inspectors of Revenue Department carry out identical functions. While parity in pay scales was brought about by the govt. in 2004, Inspectors of IB and CBI were placed on a higher pedestal in the matter of allowances and other benefits like risk allowance etc. It is requested that similar benefits be allowed to the Inspectors of Revenue Department.

Considering the fact that the Dept. of Revenue and its personnel are to discharge the onerous functions as detailed elsewhere in this memorandum while dealing with the issues concerning with Supdts. of Central Excise & Customs and Income Tax Officers and taking in to account that as of now, there is no pay scale of 7450-11500, in the Dept. of Revenue, the said Inspectors are to be assigned the pay scale of Rs.7,500-12000 i.e. P.B. 2 with Grade Pay of Rs.4800/-.

Income Tax Officers / Supentendents of Central Excise & Customs and Appraisers:

Income tax Officers/Superintendents of Central Excise & Customs and Appraisers were in the time scale of pay of Rs. 7500-12000 as on 1.1.2006, where as the Section officers of the Central Sectt. were in the pay scale of Rs. 6500-10500. The Scenario emerges from the recommendation of the 6th CPC is as follows :

The Incometax Officers/Superintendents of Customs and Central Excise and the Section Officers have been placed in the same scale of pay of Rs.7500-12000 corresponding to the Pay Band 2 with grade Pay of Rs.4800. In para 3.1.14 the VI CPC has given a general recommendation to maintain parity between field and Secretariat Offices. In Para 3.1.9 the Commission has suggested the following structure to be adopted for the Secretariat offices, consequently to be followed in the field offices also.


Pre revised pay scale

Revised PB and G.Pay

Section Officer


8000-13500(on completion of 4 years)

PB2 of 8700-34800 and Grade Pay of Rs. 4800

PB2 of 8700-34800 and Grade Pay of Rs5400

on completion of 4 years

Under Secretary


PB3 of 15600-39100 and grade pay of Rs. 6100

However, Group 'B' Gazetted Executive Officer under the CBDT & CBEC are discharging hazardous and arduous nature of duties relating to collection of Revenue during survey, anti-evasion/smuggling and combating the drug trafficking, attachment and sales of movable and immovable properties for realization of arrears and being posted in remote places. They are required to be rewarded adequately.

Risk Allowance granted by 5th Pay Commission in para 106.22 to Central Government employees whose normal duties involve special risks, ought to have been granted to Group 'B' Gazetted Officers in the Dept of Revenue, for the Risks undertaken by them in discharge of their functions. The present Pay Commission has recommended Risk Insurance in the place of Risk Allowance. Accordingly, the said Risk Allowance/ Risk Insurance may be granted to the said Gazetted Officers also.

Importance of an efficient workforce in Department of Revenue, is well recognized by different tax reform committees including the committee headed by Dr. Raja Chelliah. The said committee in para 10.2 observed that the Government should recognize the paramount importance of Revenue Department and that the salary scales and promotional prospect of the officers and staff in the Revenue Department should at least be comparable with the best that Government offers to its employees. In many developed countries; Revenue Officers are treated differently in the matter of pay and other benefits.

In view of the above, the denial of higher pay scale of Rs. 8000-13500 to the Appraisers/Supdts./Income Tax Officers, on the analogy that the said scale is pertaining to the Promotional cadre of Asstt. Commissioners, is on untenable ground, in as much as the pattern obtaining in the Central Secretariat viz. Section Officers with a Pay Scale of 6500 -10500 were being promoted directly to the Senior Time Scale of Rs. 10000-15200, could have been applied to the Gazetted Group 'B' Officers of Revenue Departments, also. Besides, it is pertinent to point out that the 6th CPC in para 7.15.24 has categorically stated that parity between Chief Enforcement Officer and Income Tax Officers and analogous posts in CBDT & CBEC should be maintained. The said Chief Enforcement Officers (now re-designated as Asstt. Director) are placed in the pay scale of 8000-13500. Since all the said officers i.e. ITO/Supdt. of CE & Customs/Appraisers and CEO belong to the same Dept. of Revenue, it is all the more necessary that similar dispensation with regard to Pay & Allowances is granted to them, as recommended by the 6th CPC. Hence, it is suggested that all the above said Officers be placed in the Scale of 8000-13500 corresponding in P.B.2 with Grade Pay of Rs. 5,400/-

Administrative Officers and Private Secretaries:

They are presently in the Pay Scale of Rs.6500-10500. As per the general recommendation they will be placed in PB-2 with Grade pay of Rs.4200/-. However they are to be assigned pay scale of Rs.7500-12000 i.e. PB-2 with Grade Pay of Rs.4800 as per the recommendation of 6th CPC in para 3.1.14 to maintain the principle enunciated by the Commission of having parity in pay & allowances of the personnel in the field and secretariat offices. This general recommendation has not been adhered to while suggesting the PB and Grade Pay.

Further, it may also be noted that the feeder cadres for these posts viz. Office Superintendents and Steno Gr. I, are also placed in the same Pay Band and Grade Pay, thereby creating an anomalous situation. This further justifies the need for placing these officers in the pay scale of 7500–12000 i.e. PB-2 with Grade Pay of Rs.4800/-.

Drawing analogy from the recommendations in para 3.1.14, these officers are also to be placed in the pay scale of 8000-13500, on completion of 4 years.

Notional Effect to the Revised Pay Scale of Inspector & ITO/Superintendents of CE & Customs and Appraisers:

The anomaly in the pay scales assigned to the Inspectors and Income Tax Officers / Supdts. of Central Excise & Customs and Appraisers in the Revenue Dept. disturbing the parity with similarly placed officers of the CBI / IB was set right on 21/04/2004 by the Govt. of India. However, this order was made effective only from the date of its issue and not from 01.01.1996, the date on which the anomaly arose. The Federations in the Dept. of Revenue had been representing to set right this illogical decision, citing the case of the Accounts Employees in Railways, Postal , IA & AD, Civil Accounts, Ministry of Coal & Mines, etc. In all these organizations the concerned officers were granted the benefit of notional fixation of revised pay with effect from 01.01.1996 and the actual payment with effect from the date of the issue of order. The 6th CPC to whom the matter was referred to, perfunctorily rejected this claim, stating the commission as a general rule was not considering demands seeking retrospective application of some or the other order, unless a clearcut and manifest anomaly that cannot be corrected, other than through such retrospective revision is made out. The anomaly in this case cannot be set right, except through retrospective application of notional fixation of pay w.e.f 01.01.1996, as has been rightly done in the case of officers of various organizations mentioned above. Failure to set right this anomaly will have a permanent effect extending to the entire service tenure of the individual officers concerned.

The need for retrospective revision with effect from 01.01.1996 on a notional basis, is further established from the observation of the Commission in para 7.15.24 of the report wherein the traditional parity of the Chief Enforcement Officer with the ITO/Superintendent of Central Excise and Assistant Enforcement Officer with the Inspector of Central Excise and Income Tax has been admitted and recommended for maintenance in future. On 01.01.1996, Chief Enforcement Officer were in the scale of Rs.7500-Rs.12,500/-.