" IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE ARE ALSO MEMBERS OF AIACEGEO. THIS IS THE ONLY ASSOCIATION FOR SUPERINTENDENTS OF CENTRAL EXCISE AND IRS OFFICERS PROMOTED FROM THE GRADE OF SUPERINTENDENT OF CENTRAL EXCISE THROUGH OUT THE COUNTRY . President Mr.T.Dass and SG Mr. Harpal Singh.

Friday 23 May 2014

Reply to 7th CPC Questionnaire



ALL INDIA ASSOCIATION OF CENTRAL EXCISE
GAZETTED EXECUTIVE OFFICERS
President:                                          Address for communication:                               Secretary General:
Lokanath Mishra                        240, Razapur, Ghaziabad-201001 (U.P.)                                      Ravi Malik
Mob. 09437314941                      mail Id: ravimalik_sweet@yahoo.com                         Mob. 09868816290
Vice Presidents: Sampat Rai, Vatan Kamble (Central); Anurag Chaudhary, Ravi Joshi (North); A. Ravinder Singh, Rajan G. George (South); A. S. Roy, Shubhrangshu Deb (East); P. D. Nimhan, S. K. Jha (West)
Joint Secretaries: Anand Kishore, Laxmi Lal Singhvi (Central); N. N. Lal, R. K. Solanki (North); G. Srinath, S. Chandrasekar (South); Ashwini Majhi, V. N. Jha (East); G. K. Jhala, M. K. Misra (West)
Office Secretary: C.S.Sharma (Mob. 09313885411)             Treasurer: N.R.Manda (Mob. 09871483585)
(Recognised by G.O.I., Min. of Fin. vide letter F.No. B. 12017/10/2006-Ad.IV A Dt.21.01.08)

Ref. No. 109/CPC/14                                                                     Dt. 23.05.14

The Secretary,

7th Central Pay Commission,

New Delhi

Sub: Reply to Questionnaire

Madam,

It is submitted with due regards that the reply to the questionnaire on behalf of the All India Association of Central Excise Gazetted Executive Officers representing 17,000  Gazetted Officers namely Superintendents of Central Excise is enclosed herewith  for kind consideration of the Hon’ble Commission. These officers are responsible to earn the major revenue for the Government every year well ahead of the set targets in the form of Central Excise duty, Customs duty, Service Tax, Inland Travel Tax and Foreign Travel Tax despite of being faced the worst career prospects.  It is requested that the CPC may kindly recommend to the Government to grant the interim relief to all Central Government employees to the tune of 25 per cent of basic pay (GP +PB) and   merger of 50% DA with the basic pay w.e.f 01.01.2011. It is further requested that the recommendations of the Hon’ble 7th Central Pay Commission may kindly be implemented w.e.f. 01.01.2014. 

It is also requested that this Association may kindly be given the opportunity to appear before the Hon’ble Commission in person to submit oral evidences. The Memorandum of the Association is being filed separately.

Thanking you.

Yours faithfully,

Encl: As above.


(RAVI MALIK),

Secretary General.

Copy with the request for necessary action to-

(1)   The Secretary, DOPT, North Block, New Delhi.

(2)   The Secretary, Department of Expenditure, North Block, New Delhi.

(3)   The Secretary, Department of Revenue, North Block, New Delhi. 

(4)   The Chairperson, CBEC, North Block, New Delhi.

 

(RAVI MALIK)

 


 


REPLY TO THE QUESTIONNAIRE

1. Salaries

1.1 The considerations on which the minimum salary in case of the lowest Group ‘C’ functionary and the maximum salary in case of a Secretary level officer may be determined and what should be the reasonable ratio between the two.




The total value of world income is closing to $70 trillion (£43.9 trillion) per year for seven billion people in the world. So, the average income is heading towards $10,000 (£6,273) per person per year which is approximately Rs. 55,000/- per month. The minimum salary, therefore, should be fixed at least at 50% of Rs. 55,000/-, i.e., 27,500/- per month and the maximum salary should be at least 3 times of Rs. 55,000/-, i.e., Rs 1,65,000/- . Accordingly, the ratio between the higher salary and minimum salary should be 6:1.  The salary of Group ‘B’ Gazetted officers should be at least 50% of 1,65,000/-, i.e., Rs. 82,500/-.   The earlier Pay Commissions fixed the ratio between higher and minimum salary as 10:1.  However since our country at present has adopted the Economic policy based on Market Economy (Globalization), the minimum and maximum salaries are required to be fixed on the basis of pay fixation made by  developed countries which is 4:1, 6:1 and 6.6:1 respectively in USA, UK  and France. Hence considering the same, the appropriate ratio is 6:1. While 15th ILC norms should continue to act as a ‘safety net’, the minimum salary should be interlinked with minimum qualification at entry level of Group ‘C’, ‘B’ and ‘A’ posts separately. Once it is done, maximum salaries in these 3 Groups should be determined at an equal ratio (i.e., if one group have a minimum-maximum ratio of 1: x, the other two should also have a minimum-maximum ratio of 1: x). The minimum and maximum salary for all Govt. employees should be arrived at taking into consideration the fringe benefits generally available to higher posts in the form of Govt. accommodations, vehicle, foreign trips (in the name of training, study etc.) and other perquisites. The common multiplication factor should also be used to make same reasonable proportion among all of three Groups as the difference between the PB2 and PB3 is practically zero whereas there great jump between PB3 and PB4.    

1.2 What should be the considerations for determining salary for various levels of functions falling between the highest level and the lowest level functionaries?

The 6th CPC gave maximum advantage to Group ‘A’ in the name of unrealistic exodus. If it was so, this was equally applicable to Group ‘B’ Gazetted Officers. So, the difference of salary between highest and lowest level functionaries is required to be rationalized by having equal proportion between pay bands as well as grade pays using same multiplication factor. The Gazetted Group ‘B’ officers are a higher ranked civil servants. These officers in the Central Government are entrusted with the supervisory and managerial role. They are placed at IInd level of command among the broad Civil servant categories. At present, the Grade Pays and Pay Bands have been created to give huge benefits to Group ‘A’ officers but  the Group ‘B’ Gazetted Officers have been granted minimal/negligible benefits. Parity is the basic concept of our Constitution. The Ministry of Finance has clearly stated that “in no two organisations, the assigned duties of comparable posts can be totally identical and so in the case with the Gazetted Executive Officers of CBI, IB, Central Police Organisations, Enforcement Directorate, Customs, Income Tax and Central Excise. However, the 1st, 2nd, 3rd, 4th and 5th Pay Commissions have established the comparable nature of the level of responsibilities assigned to the Gazetted Executive Officers of each of the categories mentioned above by assigning identical pay scales to them. This was also upheld by the committee set up by the then Finance Minister on the subject.” The pay scale of Deputy Superintendent of CBI was upgraded by the Government during 1996 retrospectively from 01.01.86 to the level of the Grdae Pay of Rs. 5400/- in PB3 disturbing the traditional parity and without upgrading the pay scale of other analogous posts. The pay scale of DCIO of IB was also upgraded by the Government during 1996 to the same level. The analogous counterparts of Enforcement Directorate have also been placed under a Garde Pay of Rs. 5400/-. Therefore, the post of Superintendent of Central Excise being an analogous post to Deputy Superintendent of CBI as per the recruitment Rules of the Deputy Superintendent of CBI is entitled to get the pay scale/grade pay equivalent to the later duly classifying such post as Group ‘A’.  The post of Inspector of Central Excise is the feeder grade for the post of Superintendent of Central Excise and, likewise, the Inspector of CBI is the feeder grade for the post of Deputy Superintendent of CBI. The Government has granted the same Grade Pay, i.e., Rs. 4600 in PB-2 to both of the above categories of the Inspectors. Hence, both the promotional posts are also required to get equal grade pays since the same date.  As per the Recruitment Rules of CBI framed under article 309 of Constitution of India, the Central Excise and Customs Department is considered as a Central Police Organisation. Accordingly, the executive posts of Central Excise department are considered as analogous posts to respective levels in CBI and, therefore, executive officers of Central Excise department are entitled to join CBI on deputation. The Executive Officers of Central Excise and Customs Department are uniform bearing Officers. Even the recommendations of the 6th CPC under para 7.14.25 to maintain parity between the post of Chief Enforcement Officer and Central Excise Superintendent etc. have also not been implemented.

The Central Excise Department has the same structural features, same command & control elements as in Defence forces. The Central Excise executive officers also serve under similar harsh service conditions as the Army. In spite of the similarities in the duties performed by the Central Excise personnel and Defence personnel, the former ones are deprived of privileges extended to Defence and Police services.  The command, control and also rank structure of Central Excise are similar to the army except that the ranks in Central Excise have different nomenclature (Chairman, Member, Principal Chief Commissioner, Chief Commissioner, Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Asst. Commissioner, Superintendent, Inspector, Havildar and Sepoy). In accordance with the NDPS Act and the Central Excise Act, the powers of the Police officers are vested into executive officers of Central Excise.  The personnel of Central Excise and Customs are deployed on the borders (with Pakistan, Bangladesh, Nepal, China, Myanmar etc.), International Airports and International Sea Ports. They are also actively engaged in counter insurgency operations against dreaded smugglers, hard core criminals, white collared criminals and chronic tax evaders etc. within the country. These personnel have suffered heavy casualties while dealing with trans-border crimes and countering with dreaded smugglers. Their duties are akin to the Army and they are responsible not only for guarding the Economics borders of the Country but also for security of the Nation. In fact in J & K and North Eastern states of India, the Central Excise personnel are deployed side by side with the Army, BSF, CRPF and ITBP on the same location. They perform their duties in most adverse conditions coupled with the threat to the lives of them & their families by enemy action, insurgents, dreaded smugglers, hard core criminals and the climatic hazards. 

The Govt. declared before the IV CPC that Executive Officers of Central Excise Department are uniformed officers and are performing more arduous & hazardous nature of duties than executive officers of other departments like CBI & IB etc. The first level of gazetted officers such as the Superintendent of Central Excise is also the first appellate officer with whom the public has to confront while dealing with the department. These officers not only display the stamp of authority of the government to the general public but also present the true face of the government to the people. In fact, the attributes of government are measured and tested by the actions and behaviour of these first level gazetted officers who actually create the image of the government. This means that a happy & contended first level gazetted officer will impact the efficiency, effectiveness and image of the government in positive manner. His/her remunerations & career prospects should be augmented & refurbished to an optimum level to serve the best interests of the Government. Raja Chellia Committee also recommended higher pay scales for executive officers of the taxation department. The revenue officers throughout the world are also better placed than others in r/o pay matters and career prospects. In spite of the fact that the service conditions of Central excise & Customs personnel are akin to the Central Police Organisations, CBI and Defence Armed Force personnel; they are not compensated with any additional incentives or allowances as in the case of CBI, Police, Army etc. For example, an Army personnel posted in Leh-Ladakh region gets Military Service Pay but a Central Excise & Customs personnel serving under same conditions is deprived of the same without any potent reason. The post of Superintendent of Central Excise is an analogous post to the post of Deputy Superintendent of CBI and DCIO of IB but the higher benefits granted to the later ones apart from higher Group ‘A’ salary, one month additional pay in the year, 25% extra salary per month etc.  have not been granted to the Superintendent of Central Excise. The denial of benefits to Superintendent of Central Excise at par with the Deputy Superintendent of CBI etc. is discriminatory, arbitrary, illegal and unjustified. 

2. Comparisons

2.1 Should there be any comparison/parity between pay scales and perquisites between Government and the private sector? If so, why? If not, why not?

It remains an accepted fact that government service is unique in its sense of commitment, dedication and devotion. It is not comparable to any other job but more responsible and determined to work for the Government. So, they deserve many more salary & perks than any category. From Kautilya to modern day economists there are many an advice for ‘good payments’ to them being the guards of Government. In the era of globalization, they should not be deprived of better pay scale & other emoluments than the similarly placed managerial persons of foreign companies engaged in India at least.

2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not?

Under Chapter II, Article 7 of Public Sector, UN Convention against Corruption, 2004 stipulates that each State Party shall, where appropriate and in accordance with the fundamental principles of its legal system, endeavour to adopt, maintain and strengthen systems for the recruitment, hiring, retention, promotion and retirement of civil servants and, where appropriate, other non-elected public officials and also promote adequate remuneration and equitable pay scales, taking into account the level of economic development of the State Party. It is implicit from the above that the determinants for such adequate remuneration and equitable pay scales include a comparison with the Public Sector like the service conducts and conditions of this sector are always compared to that in the government service. Accordingly, the gazetted government officials should be granted the pay scale and other emoluments at least at par with the similarly placed managerial persons of profitable public sector companies, if not more than them.

2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance?

‘Variable Pay’ or ‘Performance Related Pay’ was recommended by the 6th CPC for 20% officers in PB3 only in discriminatory manner and accepted by the government accordingly. There is no full proof technique to verify the performance of the officers in our system. Very unfortunately, the ACR’s/APAR’s of the officers are also reported based on favouritism and personal pleasure instead of actual work performance. Only the beloved ones of the authorities are able to get excellent reports irrespective of performance. In the PSE’s, this pay is linked directly with profit. If it is to be introduced, the same may start with the revenue earning departments where the present (and largely misused) 1% incentive schemes can be replaced with at least 3% additional increment for all employees as a whole team instead of individual. The concept of performance related pay structure was actually introduced by foreign companies. If parity in salary will be maintained, variable pay may automatically be linked to performance. However, this variable pay may also be granted in the form of Bonus to all employees. 

 

3. Attracting Talent

3.1 Does the present compensation package attract suitable talent in the All India Services & Group ‘A’ Services? What are your observations and suggestions in this regard?

There should not be any direct entry into Group ‘A’ level. Direct entry must be into Gazetted Group ‘B’ level or at least 90% of promotional posts in Group ‘A’ should be reserved for promotees. All of the categories of Gazetted Group ‘B’ Officers are also required to be promoted directly to STS post instead of JTS post. The top posts dealing with HR of the cadre must be from the officials of another cadre. For example, Chairman and Member (P&V) of Central Board Excise & Customs (CBEC) should be other than IRS (C & CE) officials. If there is dearth of talent in any service, it starts from Group ‘B’ Gazetted level particularly in the indirect revenue department on account of the worst career prospects and lower pay packages curbing the talent. As such to attract talent particularly to this department, the pay packages of revenue officers may be kept at higher side than others and their career prospects may be also be improved suitably to grant them the feeling of job-satisfaction. It is also worth to mention in this regard that even the revenue officials of State Governments are far better placed than revenue officials of Central Government in the matter of pay scales in our country.

3.2 To what extent should government compensation be structured to attract special talent?

There should be a provision of direct recruitment in the Group ‘B’ Gazetted post instead of Group ‘A’ and the officers should go for ‘in-service professional studies’ in reputed institutions including foreign ones. No one should enter Group ‘A’ directly or at least 90% of the promotional posts in Group ‘A’ are required to be reserved for promotee officers and all categories of the Group ‘B’ Gazetted Officers are required to be promoted directly to STS post instead of JTS without any discrimination. Every Government employee should get at least 5 functional promotions in the career without discrimination and the officers entering into the job in a Grade Pay of Rs. 4600/- should necessarily cross at least two levels of PB4 in their career. Under the present circumstances, it is worth to mention that the promotion from a Grade Pay of Rs. 5400/- in PB3 to Rs. 6600/- and from Rs. 7600/- to Rs. 8700/- can no way be treated as the functional promotion. The Group ‘B’ Gazetted Officers should also be given weightage in the seniority at the time of entry into Group ‘A’ in lieu of the service rendered by them in Group ‘B’ Gazetted post. Special talent is required to be attracted in all sections/groups in the government. In fact in the Central Board of Excise & Customs (CBEC) under the Revenue Department, the entire field performance is dependent on Group ‘B’ cadres of Inspector & Superintendent of Central Excise. However, these two cadres are also the two most deprived ones not only in the department but also in the Government of India being faced the extraordinarily acute stagnation and lower pay packages despite of earning the major portion of Government revenues. Their common entry counterparts are enjoying better pay packages as well as entering into PB4 levels whereas these poor officers are retiring on PB2 post barring 1%. The least can be done to attract talent particularly in CBEC is to provide promotional avenues and equitable pay to these cadres at par with their common entry analogous counterparts.

 

4. Pay Scales

4.1 The 6th Central Pay Commission introduced the system of Pay Bands and Grade Pay as against the system of specific pay scales attached to various posts. What has been the impact of running pay bands post implementation of 6th CPC recommendations?

The Pay Band and Grade Pay system can be continued provided that there falls no same Grade Pay under different Pay Bands.  For example, same Grade Pay of Rs. 5400/- falls under PB-2 and PB-3 both at present causing nil benefit to the employees. The difference between two Grade Pays should also be reasonably higher. For example, this difference between Non-Gazetted Group ‘B’ and Gazetted Group ‘B’ is merely of Rs. 200/- whereas it is more than Rs. 1,000/- or even more for other levels. There is not a difference of even single paisa between a Grade Pay of Rs. 5400/- in PB2 and PB3. Such type of discrimination is to be undone. For this, Group ‘B’ Gazetted post is required to be started with a Grade Pay of Rs. 5400/- in PB3. Next level after it may be a Grade Pay of Rs. 6600/- for Group ‘A’ entry. There should be a difference of at least Rs. 3500/- between the Grade Pay of Non-Gazetted and Gazetted Group ‘B’ post. Likewise, there should also be a difference of at least Rs. 5000/- between the Grade Pay of Gazetted Group ‘B’ and Group ‘A’ entry post. There should also be a stage to stage fixation of pay at the time of the implementation of the recommendations of the Pay Commission.   

4.2 Is there any need to bring about any change?

There is a need to rationalize the Grade Pays vis-à-vis each Pay Band. There should fall no Grade Pay with same magnitude under different Pay Bands. The difference between two Grade Pays must be at least of Rs. 2000/-. The Band Pays should also be made rationalized to give equitable benefits to all.

4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government?

The 6th CPC tried to take care of the exodus in Group ‘A’ services only. The equitable schemes are also required to be devised not only for the Group ‘B’ Gazetted Officers but also for the other categories. Group ‘B’ Gazetted Officers are required to be promoted directly to STS post in uniform manner without any discrimination. All government employees are also required to be granted at least 5 functional promotions in the career. Particularly in CBEC, the Inspector grade officers should cross at least two levels of PB4 in their career. This all shall arrest exodus and attract talent towards the Government in actual terms in the interest of the good governance as well as Government revenues.

4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales/pay band to be rationalized and if so in what manner?

Yes, all the Group ‘B’ gazetted officers in general and Superintendents of Central Excise in particular should be granted one Grade Pay at par with Deputy Superintendent of CBI on the reason as stated vide para 1.2 above. The status and benefits are now linked to the Grade Pays and not to Pay Bands. However, the number of Pay Bands should be only three (3) for 3 groups. The Grade Pays should be uniform for all departments to ensure equity and equality of pay not only among identical posts but also among promotional posts. All of varied four Grade Pays, i.e., Rs. 4600/- in PB2, Rs. 4800/- in PB2, Rs. 5400/- in PB2 & Rs. 5400/- in PB3, meant for Group ‘B’ Gazetted Officers of different departments & organisations should be merged into one Grade Pay of Rs. 5400/- in PB3 for the sake of justice & equity.

4.5 Is the “grade pay” concept working? If not, what are your alternative suggestions?

A major fault-line in the Grade Pay system has been created by the 6th CPC by allowing a same Grade Pay of Rs. 5400/- in two Pay Bands, i.e., PB-2 & PB-3. There should no way be the same Grade Pay in different Pay Bands. Difference between two Grade Pays must be at least of Rs. 2000/-. There should be a difference of at least Rs. 3500/- between the Grade Pay of Non-Gazetted and Gazetted Group ‘B’ post. Likewise, there should also be a difference of at least Rs. 5000/- between the Grade Pay of Gazetted Group ‘B’ and Group ‘A’ entry post. It is also required to remove the anomalies in the pay of Direct Recruits and the promotee officers in all cadres.

 

5. Increment

5.1 Whether the present system of annual increment on 1st July of every year uniformly in case of all employees has served its purpose or not? Whether any changes are required?

The increment system being followed prior to 6th CPC seems to work in more purposeful manner. If the same system is not followed, two specific dates for increment, i.e., 1st January and 1st July respectively should be followed for the employees joining the job in Ist and IInd half of the year.

5.2 What should be the reasonable quantum of annual increment?

The reasonable quantum of increment should not be less than 12% of the Grade Pay plus Band Pay.

5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?

It has been observed that there is no genuine criterion to differentiate between higher and lower achievers. The general practical criterion is only to have influential relations in the system. Thus, influential officers having high handed relations are able to be categorized as higher achievers. Moreover, such type of system seems discriminatory in our democratic system. So, this should be done away. The reformative measures should be taken to convert the lower achievers to higher achievers which are only to make them job-satisfied by granting them due salaries & perks and also worth career prospects. The submissions made under para 2.3 may also kindly be considered.

5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20, 30 years of regular service, counted from the direct entry grade. What are the strengths and weaknesses of the scheme? Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/or those obtaining professional degrees?

The upgradations under MACP Scheme are being given in the hierarchy of Grade Pays instead of promotional hierarchy. There were no such provisions in the original ACP Scheme.  A lot of confusion was created after the introduction of the Grade Pay structure establishing two distinct hierarchies, promotional and Grade Pay. Promotional hierarchy is also varying department to department. Somewhere Group ‘B’ Gazetted Officers are promoted merely to a post carrying a Grade Pay of Rs. 5400/- in PB3 whereas they are being promoted to a post carrying a Grade Pay of Rs. 6600/- at other places. Like it, somewhere Group ‘B’ Non-Gazetted Officers are promoted to a post carrying a Grade Pay of Rs. 5400/- in PB3 whereas they are being promoted to a post carrying a Grade Pay of Rs. 4800/- or Rs. 4600/- at other places. Somewhere Group ‘B’ Gazetted Officers are placed in a Grade Pay of Rs. 4600/- whereas in Rs. 4800/- and also Rs. 5400/- in PB2 or PB3 at other places. Somewhere promotional hierarchy is 4600à6600à8700, somewhere 4600à4800à6600à7600à8700 and somewhere it is 4600à4800à5400à6600à7600à8700. Some Group ‘B’ Gazetted Officers have been granted the time scale in PB2 and others in PB3. Due to varying promotional hierarchies, some officers got a Grade Pay of Rs. 7600/- and some Rs. 6600/- on IIIrd MACP upgradation. The worst hit category is the Central Excise Superintendents who are now able to get only a grade pay of Rs. 5400/- after 30 years or more service which they were able to get only after 24 years of service under ACPS. So, the promotional hierarchy after entry into group ‘B’ is required to be made uniform for the sake of justice to all. The posts under the grade pays of Rs. 5400/- & 6600/- and also Rs. 7600/- & 8700/- being functionally same, the ideal promotional hierarchy for all after entry into Group ‘B’ seems only to be 4600à6600à8700à10000. The officers should also be granted the MACP upgradation under this ideal hierarchy of 4600à6600à8700à10000 without offsetting the MACP upgradation with the time scale. This will give justice to all without any discrimination or disparity. The source of MACPS being one and the same, i.e., common recommendations of the 6th CPC, it is also worth to mention that the State governments like Uttar Pradesh etc. have not offset the MACP upgradation with the time scale. The offsetting of MACP upgradation with the time scale was also not recommended by the 6th CPC but, very unfortunately, the Government offset the MACP upgradation with the time scale against the recommendations of the Commission. In order to rectify the above said discrepancy, a number of employees approached the legal courts and succeeded. The Hon’ble Supreme Court has also decided that the MACP upgradation shouldn’t be offset with time scale and also the MACP upgradation should be granted in promotional hierarchy. Inspectors and Superintendents of Central Excise Department have been suffering with extraordinarily acute stagnation for decades. There are many who didn't get any promotion for more than 25 years and they are retiring with single promotion on a PB2 post in the career of 35-40 years while their common entry counterparts are easily entering into PB4 with 5-6 promotions after entry into PB2 post. It is also worth to mention that the Central Excise Superintendents & Inspectors are forced to work under their extreme juniors of Customs belonging to one & the same cadre of Inspector and recruited through one & the same process under one & the same organization of CBEC in one & the same department of Revenue of one & the same Ministry of Finance. This discrimination is required to be undone immediately. The parity is the basic concept of our Constitution and the parity in promotions is required to be maintained amongst the similarly placed employees but the Government of India have not initiated any action to maintain parity in promotions as well as pay packages amongst the Group ‘B’ Gazetted as well as Non-Gazetted Officers. The group ‘A’ officers have already been granted financial parity by the Government of India by the grant of non-functional financial upgradation to other group ‘A’ officers at par with the counterparts of IAS. The grant of the batch to batch non-functional financial upgradation after entry into group ‘B’ is also the immediate need of the time for all group ‘B’ officers to bring them at par at least financially with the best placed group ‘B’ counterparts like CSS etc.  The Inspectors and Superintendents of Central Excise are being discriminated despite of collecting the major portion of Government revenues and are not being awarded due career prospects as well as appropriate pay packages.             

The 6th CPC introduced the MACPS to modify ACPS. No need to say that anything is always modified to grant more benefit to the stake holders. But MACPS proved to be harmful for the employees as the upgradations granted under MACPS were not in accordance to the ‘Promotional Hierarchy’ and one MACP upgradation was offset with the time scale. On account of following the ‘Grade Pay Hierarchy’, the employees got the benefit of Rs. 200/- only (at the time of upgradation to Rs. 4800/- from Rs. 4600/-) or Rs. nil (at the time of upgradation to Rs. 5400/- in PB3 from Rs. 5400/- in PB2). Finally, one could say that MACPS earned the anomaly of being dragged to the legal courts on the most number of times. The Hon’ble Supreme Court of India vide  SLP No. 7467/2013  filed by the Government  against the judgement of the Hon’ble High Court of Chandigarh in CWP No. 19387/2011 has already confirmed the  order dated 31.05.2011 of Chandigarh CAT for grant of financial upgradation in the promotional hierarchy under MACPS. Para 8.1 is not in consonance to the verdict given by the Hon’ble Supreme Court and is liable to be scrapped w.e.f. its initiation. The offset of the MACP upgradation is also liable to be scrapped w.e.f. its initiation as per the verdict given by the Hon’ble Supreme Court in the case of Delhi Nurses Union (Regd.) Vs. U.O.I. and also by the Hon’ble CAT of Ernakulam in the case of Sh. N.K. Gopinatham Vs.  U.O.I. The MACPS is totally unable to fulfil the basic purpose of grant of financial upgradations to counter stagnation due to the lack of promotional avenues.

There should be the provisions to allow minimum actual 5 promotions on functional basis to Group ‘B’ Gazetted Officers after entry into group ‘B’ like the Group ‘A’ officers in time bound manner or on completion of standard residency periods prescribed by the DOPT. The Time bound promotion scheme should be introduced in all departments particularly including Central Excise Department. If 5 functional promotions are not possible, there should be the provisions of 5 in situ promotions in the functional promotion hierarchy in a time bound manner.  The MACPS is required to be continued in the form of in situ promotional scheme (higher pay scales with higher designation) based on ideal functional and uniform hierarchy of 4600à6600à8700à10000 to motivate personnel especially in Central Excise and Customs Department where normal promotional avenues are extraordinarily bleak. There must also be the provisions for stepping-up of the pay of seniors at par with the juniors who are elevated on account of ACPS/MACPS.  

 

6. Performance

What kind of incentives would you suggest to recognize and reward good performance?

In our government system, achievements are always based on team efforts instead of individual. Incentives should be granted to good performers in the form of annual bonus or increments on higher rates on the whole team basis. The best incentive for these performers is higher responsibilities, viz. promotions upto the highest levels.

7. Impact on other organizations

Salary structures in the Central and State Governments are broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, Panchayati raj institutions & autonomous institutions.

To what extent should their paying capacity be considered in devising a reasonable remuneration package for Central Govt. employees?

The Group ‘B’ Gazetted Officers of State Governments are in far better position in r/o the pay matters as well as career prospects. They are also given weightage of seniority at the time of entry into group ‘A’ in lieu of the service rendered in Group ‘B’ Gazetted post. They have been placed in a grade pay of Rs. 5400/- in PB3 and promoted directly to a STS post. They are also having vast facilities, huge infrastructure and other amenities alongwith the canteen facility to purchase the households and other things/goods of requirement at subsidized/concessional price. Hence, all officers including the Group ‘B’ Gazetted Officers of Central government, particularly Central Excise Superintendents, should also be granted all of such facilities alongwith appropriate pay scale and promotional avenues.

 

8. Defence Forces

8.1 What should be the considerations for fixing salary in case of Defence personnel and in what manner does the parity with civil services need to be evolved, keeping in view their respective job profiles?

The service conditions of Central Excise & Customs executive personnel are akin to the Central Police Organisations, CBI and Defence Armed Force personnel but they are not compensated with any additional incentives or allowances as in the case of CBI, Police, Army etc. In spite of the similarities in the duties performed by the Central Excise executive personnel, they are deprived of privileges extended to Defence and Police personnel. Hence the Executive officers of Central Excise Department should also be granted all the benefits as granted/to be granted to Defence personnel. It is also worth to submit that the Railway personnel are given the facilities like free journey with family and attendant even after retirement, Airlines personnel are given the facility for free or concessional air journey alongwith families, Bank personnel are given loan facilities for various purposes at low interest rates, Hydel personnel are given electricity for home consumption on very nominal rates etc. etc. Like it, Central Excise executive personnel should also be granted some specific facilities.

8.2 In what manner should the concessions and facilities, both in cash and kind, be taken into account for determining salary structure in case of Defence Forces personnel.

The personnel of Central Excise and Customs are deployed on the borders, International Airports and Sea Ports also being actively engaged in counter insurgency operations with smugglers and tax evaders etc. within the country. These personnel have suffered heavy casualties while dealing with trans-border and other hard core criminals. Their duties are akin to the Army and they are also responsible for security of the Nation. They perform their duties in the most adverse conditions coupled with every threat to the person & property alongwith their families. In spite of the fact that the service conditions of Central Excise executive personnel are akin to the Defence Armed Force personnel, they are not compensated with any additional incentives or allowances as also in the case of Police, CBI, Army etc. Therefore, 7th CPC is requested to consider extending the grant of all salary & other benefits to the executive officers of Central Excise Department as being granted/to be granted to others including Army personnel.

8.3 As per the November 2008 orders of the Ministry of Defence, there are a total of 45 types of allowances for Personnel Below Officer Rank and 39 types of allowances for Officers. Does a case exist for rationalization/streamlining of the current variety of allowances?

The Central Excise executive officers should also be granted all benefits to be extended by 7th CPC to the Defence personnel.

8.4 What are the options available for addressing the increasing expenditure on Defence pensions?

The Central Government has decided to introduce ‘One Rank, One Pension’ for Defence personnel. The executive officers of Central Excise and Customs are uniformed officers having the same structural features, command & control elements and also serving under similar harsh service conditions as the Defence personnel. In spite of the similarities in the duties, the Central Excise executive personnel are deprived of the privileges extended to Defence and Police services.  Under these conditions; if the juniors start getting more pension than the seniors, it violates the hierarchy of command system as is applicable to all Armed Forces. It is a well-established dictum based on the Supreme Court judgement of 1982 and accepted by the Government that, “pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment but a payment for past services rendered”. In another judicial ruling, it has been stated that different criteria for grant of unequal pay/pension for the same rank on the basis of cut-off date of retirement violates Article 14 (equality before law) of the Constitution. All pensioners irrespective of rank are entitled to same pension. In the case of Defence services, the Government has rightfully realized the truth of this fact and given succour to the pre-2006 Defence pensioners to come up to the level of their post-2006 retirees of equivalent rank and status by granting them ‘One Rank, One Pension’. However, the Central Excise and Customs executive personnel having equitable dispositions, command structure, rank system & nature of duties are grossly ignored, discriminated & forced to face the ignominy of less emoluments vis-a-vis their post-2006 retiring juniors.  In spite of the fact that the service conditions of Central Excise executive personnel are akin to the Defence Armed Force personnel, they are not compensated with any additional incentives or allowances as in the case of Police, CBI, Army etc. Therefore, 7th CPC is requested to consider extending the grant of ‘One Rank, One Pension’ alongwith other benefits to the Central Excise executive personnel and also all of other Central Government employees for the sake of granting justice to all.

8.5 As a measure of special recognition, is there a case to review the present benefits provided to war widows?

Yes, benefits to the war widows should be enhanced. The Central Excise executive officers should also be granted all benefits to be extended by 7th CPC to Defence personnel.

8.6 As a measure of special recognition, is there a case to review the present benefits provided to disabled soldiers, commensurate to the nature of their disability?

Yes, their benefits should be enhanced. The Central Excise executive officers should also be granted all benefits to be extended by 7th CPC to Defence personnel.

 

9. Allowances

9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that the number of allowances could be at a realistic level?

The allowances need to be rationalized towards sufficiently higher side in such a manner as to ensure that the salary structure takes care not only of the job profile but the situational factors as well to make them more realistic. More benefits including extra one month salary in the year and 25% extra monthly salary granted to personnel of CBI, Police etc. are also required to be granted to the Central Excise executive personnel who are performing more arduous and hazardous duties in comparison to the personnel belonging to other departments. The salary & pension and all other allowances/actual expenditures including house rent & HRA, children education expenses, transport allowance, all compensatory allowances, special allowances, medical expenses, transfer grant, child care allowance, fee & honorarium, uniform allowance, encashment of leaves including in r/o LTC, higher education allowance, personal pay, NPA etc. should be exempted from Income Tax. Income Tax net should be strengthened on private entrepreneurs and business houses/personnel who have every trick to conceal the Income Tax liabilities. It is required to sanction the uniform allowances to Central Excise executive officers at par with Central Police Organisations. The rate of interest should be reduced on all advances including House Building Advance and the advance should also be provided to improve/maintain/renovate/extend the existing house. HBA should also be provided for purchase of plot and land. Medical expenses also need proper redressal. With the failed venture to introduce Health Insurance for all Central Government employees, very limited presence of CGHS facilities and almost non-exiting AMA practice, it is time to weigh and introduce a regular Medical Allowance at a reasonable rate with the provisions to reimburse all non-hospitalized and hospitalized expenses incurred over and above the Medical Allowance. The employees should be provided free transportation & conveyance, free medical care, free education for wards and free accommodation etc. without any tax or fee. As far as CGHS facility is concerned, it should be extended even to the families of those officers who have been posted outside the CGHS station but willing to contribute to the CGHS from their salary for their family. The insurance cover under the Group Insurance Scheme is also required to be enhanced and it should be at least of Rs. one crore for Group ‘B’ Gazetted Officers particularly for Central Excise Superintendents in the present time.

9.2 What should be the principles to determine payment of House Rent Allowance?

The house rent allowance should be the actual rent paid by an employee in a particular location and entire amount is to be exempted from Income Tax. The license fee for the Govt. accommodation should not be charged since the HRA is recovered fully. 

 

10. Pension

10.1 The retirement benefits of all Central Government employees appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade?

NPS is against the principle of pension. The experience regarding the NPS is not good. The NPS should be scrapped and the old scheme be revived. The gratuity should be revised at least equal to last drawn one month salary and be extended to the employees joined after 01.1.2004. 

10.2 As far as pre-1.1.2004 appointees are concerned, what should be the principles that govern the structure of pension and other retirement benefits?

The pay of every retired employee should be re-determined notionally as if he is not retired and then his pension is to be computed under the revised rules. The Central Government has decided to introduce ‘One Rank, One Pension’ for Defence personnel. The same scheme should be introduced in general for all and in particular for the Central Excise executive personnel on account of having equitable dispositions, command structure, rank system and nature of duties. All pensioners irrespective of rank should be entitled to same pension. The Central Excise executive personnel perform their duties in most adverse conditions coupled with threat to the person & property of them & their families.  Keeping in view the Socialistic structure of the country, constitutional provisions & to reduce vast inequality, the ratio between maximum & minimum of  pension should be brought down to 6:1 ensuring uniformly equal rise in salary/pension of all employees/pensioners irrespective of pre-retired status. In order to cater to the need of talent attraction in all cadres, it is requested to first workout the top most revised salary/pension, divide it by 6 to arrive at the minimum revised salary/pension and then derive a uniform multiplication factor by dividing minimum of revised salary/pension by minimum of pre-revised salary/pension for revision of pay & pension with the condition that the pension should not in any case be less than 70%  of the last pay or of average of last 12 months emoluments (whichever is more beneficial) particularly keeping in view the fact that there is no mechanism to reduce the expenses of daily life for pensioners after their retirement and they also get no allowance. They require to lead a respectable & decent life after their retirement as per the status of the last post occupied by them. The quantum of the family pension is also required to be equal to the pension as the unfortunate death of one member noway reduces the respect, decent status & expenses of daily life of the remaining family in the time of today. It rather increases the agonies of the family after sudden & unfortunate shock. Untimely death in younger age makes it even harder requiring more pension even equal to the salary of the deceased.  The grant of family pension equal to the pension will also give a bit consolation to the family of the deceased.

The pension of Central Government pensioners undergoes revision only once in 10 years. The pension structure gets seriously dis-aligned during this period as 50% increase in price takes place even in less than 5 years. This results in considerable erosion of the financial position of the pensioner. Dearness Relief does not adequately take care of the inflation at this level. Working employees are getting automatic relief by way of 25% increase in their allowances with every 50% rise in Dearness Allowance. As pensioners do not get any allowance, they feel discriminated. In order to strike a balance, Dearness Relief should be automatically merged with pension whenever it goes to 50%.  Alongwith, 10% upward enhancement in pension/family pension be granted every five years after the age of 60 years & up to 80 years. Thereafter, it should be 10% more than the existing dispensation as, in the present scenario of high inflation, climatic changes, incidence of pesticides & rising pollution, old age disabilities/diseases set in by the time an employee retires and go on manifesting very fast, need additional finances to take care of these disabilities and diseases. The purchase value of pension gets reduced day by day due to continuously high inflation and steep rise in cost of food items & other requirements making over all steep rise in living cost. Retired persons/senior citizens do not enjoy fully public goods & services provided by Government due to lack of mobility and many other factors. Their ability to pay tax gets reduced from year to year after retirement due to ever-increasing expenditure on food, medicines and other incidentals. Their net worth at year end gets reduced considerably as compared to the beginning of the year. Inflation is much more than any tax for a pensioner. It erodes the major part of the already inadequate pension. To enable pensioners to live in minimum comfort at the far end of their lives and to cater for ever rising cost of living, they should be spared from paying any tax including Income Tax. The commutation value in r/o the employee superannuating at the age of 60 years between 01.01.96 and 31.12.05 commuting a portion of pension within a period of one year would be equal to 9.81 years purchase. After adding thereto a further period of two years for recovery of interest, in terms of observations of Supreme Court in its judgment in Writ Petitions No. 395-61 of 1983 decided in December 1986, it would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of persons superannuating at the age of 60 years after 31.12.05 seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986; the life expectancy stands at 76 years now. Therefore, restoration of commuted value of pension after 12 years is fully justified. As far as health is concerned, it is not a luxury and it should not be the sole possession of a privileged few. It is not only a welfare measure but also a fundamental right of all present & past employees. To ensure hassle free health care facility to pensioners/family pensioners, Smart Cards should be issued to all pensioners, family pensioners and their dependents for cashless medical facilities across the country irrespective of department. These smart cards should be valid in all Govt. hospitals, all private & Govt. Multi Super Specialty hospitals, all CGHS, RELHS & ECHS empanelled hospitals across the country. No referral should be insisted for medical treatment or tests. The Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should also be recognized as Authorized Medical Attendant.  The enjoyment of the highest attainable standard of health is recognized as a fundamental right for all in terms of Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme Court 922). The Supreme court has held that the right to health to a worker is an integral facet of meaningful right to life to have not only a meaningful existence but also robust health and vigour. Therefore, the right to health and medical aid to protect the health & vigour of a worker while in service or after retirement is a fundamental right to make life of a worker meaningful and purposeful with dignity.  

All pensioners, irrespective of pre-retirement class & status, should be treated as same category of citizens in r/o health. There should be no class or category based discrimination and all must be provided health care services at par. To ensure that the hospitals do not avoid providing reasonable care to smart card holders and other poor citizens, a Hospital Regulatory Authority should be created to bring all hospitals and diagnostic labs under its constant monitoring for quality, rates & timely bill payments by Govt. agencies & Insurance companies. CGHS rates should be revised keeping in mind the workability and market conditions.  As recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.10 {Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010} discussing the enhancement of FMA, CGHS card estimates for serving Personnel, since estimates are not available separately for pensioners, M/O Health & Family Welfare had assessed the total cost per card per annum in 2007-08 to be Rs. 16435/-, i.e., Rs.1369/- per month for OPD. Adding to its inflation, the figure today is well over Rs. 2000/- per month. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.13 has already enhanced FMA to Rs 2000/- per month for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through insurance will cost much more to the Govt. Thus, the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable. The FMA for all pensioners/family pensioners should be raised to at least Rs. 2000/- per month without any restriction linking it to Dearness Relief for further automatic increase. The FMA should also be exempted from any tax including Income Tax as it is a compensatory allowance to reimburse the medical expenses. The actual expenses made in addition to FMA should be reimbursed in hassle free manner.

11. Strengthening the public governance system

11.1 The 6th CPC recommended upgrading the skills of the Group D employees and placing them in Group C over a period of time. What has been the experience in this regard?

The 6th CPC has in fact replaced the earlier Groups (A, B, C, D) with Pay Bands (1, 2, 3, 4) creating a ‘Super Group A’ at PB-4. In the process, an artificial upgradation to skill has been tried to put in. The said classification to make groups is required to be more reasoned giving justice to all.

11.2 In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to:

a) Rationalisation of staff strength and more productive deployment of available staff;

b) Rationalisation of processes and reduction of paper work; and

c) Economy in expenditure.

The 7th CPC must recommend to the Government to set up a Committee in each department with experts from outside the organization, the officials from within the organization and representatives of the Associations &  Unions of the respective department to study the functional changes taken place over the years especially due to the induction of modern technology, new challenges & the best way to meet these challenges, reduction in paper work, customer satisfaction and economy in expenditure to make suggestions to the Government. More staff deployment in the fields is required to optimize public service & interactions. More transparency and openness can only address these concerns supported by e-governance (or paper-less governance) that can play a vital role in this endeavor.

12. Training/building competence To ensure that periodical professional training is imparted to all personnel to update the skills

12.1 How would you interpret the concept of “competency based framework”?

Targets are required to be fixed reasonably for whole team. The main ingredient to the concept of ‘competency based framework’ is having an effective behaviour at different levels of management. Such effective behaviour shall necessarily comprise of broad understanding of Government policies, to plan actions accordingly in a transparent & participatory manner and aligning the actions effectively with views & perspectives of all stakeholders. These call for adequate & timely trainings in all grades & groups of employees.

12.2 One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework.

a) Is the present level of training at various stages of a person’s career considered adequate?

Are there gaps that need to be filled, and if so, where?

b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated?

c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened?

In absence of proper planning and centralized HR in CBEC, no personalized training data is maintained. Hence, training at various stages of a person’s career is mostly inadequate or random making it ineffective towards capacity building. Therefore, all employees including Group ‘B’ gazetted officers particularly in CBEC should be provided professional trainings in reputed institutions. They should also be sent abroad for ‘in service trainings’ to interact with foreign counterparts of developed countries.

13. Outsourcing

13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?

There is no scope to outsource the core government jobs. Only supporting works may be outsourced.

13.2 Is there a clear identification of jobs that can be outsourced?

Yes, only supporting works.

14. Regulatory Bodies

14.1 Kindly list out the Regulators set up under Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated.

Comments to be furnished by the concerned Government organisation.

14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated.

Comments to be furnished by the concerned Government organisation.

14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies?

No comments.

15. Payment of Bonus.

The present bonus system is generalized and restricted to non-gazetted employees only. The true acknowledgement of performance should be more inclusive and be departmentalized to acknowledge the performance. Bonus should be granted to all Gazetted officers also. Under civil service laws of USA, federal agencies can hand out cash awards or additional time-off to reward employees for good annual performance or contributions on specific projects. The law allows for multiple awards throughout the year and all civil servants are eligible for it. Apart from merit bonus, annual bonuses are distributed equally among all employees. Bonus is nothing but considered as salary.  At least 15% of the annual gross salary should be granted as Bonus to all employees duly removing the ceiling on Bonus.