Hyderabad Customs Officer Gets Revised Pay Fixation After Supreme Court Upholds CAT Order in Landmark Pay Parity Case
In a significant development impacting pay parity for officers in the Central Board of Indirect Taxes and Customs (CBIC), Shri A. Phani Bhushan, a Superintendent in the Legal Section of the Hyderabad Customs Commissionerate, has received revised pay fixation with retrospective effect from January 1, 1996, following a series of favorable court decisions.
The matter originated with an application before the Central Administrative Tribunal (CAT), Hyderabad (OA No. 987/2019), wherein Phani Bhushan and similarly placed officers sought enhanced pay scales in line with parity norms. The CAT ruled in favor of the applicants, directing the Department to implement revised pay scales for Inspectors and Superintendents effective from 01.01.1996. This included a scale revision from Rs. 5500-175-9000 to Rs. 6500-200-10500 for Inspectors and from Rs. 6500-200-10500 to Rs. 7500-250-12000 for Superintendents.
Despite the Department’s challenge before the High Court and subsequently the Supreme Court, both courts upheld the CAT's decision. The Hon’ble High Court dismissed the Department’s writ petition (WP No. 10490/2024) on August 9, 2024, and the Hon’ble Supreme Court followed suit on February 28, 2025, dismissing the Special Leave Petition (SLP Diary No. 59005/2024).
Following this judicial affirmation, the Department of Revenue, Ministry of Finance, issued directives for implementation, and Hyderabad Customs has re-fixed Phani Bhushan's pay across multiple Central Pay Commission (CPC) cycles, culminating in the grant of the 3rd Modified Assured Career Progression (MACP) in Level 10 of the 7th CPC Pay Matrix.
As per the revised statement:
His initial basic pay of Rs. 1640 in 1995 was upgraded progressively through the 5th, 6th, and 7th CPC recommendations.
He received the 1st ACP in 2007, the Non-Functional Grade (NFG) in 2011, and the 3rd MACP in 2021.
His current pay as of January 2025 stands at Rs. 1,10,700 in Level 10, Cell 24 of the Pay Matrix.
The fixation has been made on an in personam basis, with explicit directions that it shall not be cited as precedent for others.
This outcome, aligned with the B.S. Murthy case implementation guidelines, is being seen as a significant step toward achieving long-pending pay parity in the Customs and Central Excise cadres. It may also have ripple effects on similar ongoing litigations across other zones.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
