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To,

The Hon’ble Finance Minister of India

North Block, New Delhi.

Sub: Cadre restructuring in Central Board of Excise and Customs and a proposal to upgrade the posts of Superintendent of Central Excise to the post of Asst. Commissioner..reg.

Sir,

I would like to draw your kind attention to the 52nd report of the standing committee on finance. While submitting its 52nd report on 20.04.2012, the standing committee on finance had interalia observed that “in CBEC the majority of Direct recruits Inspectors of Central Excise and Preventive officers (almost 98%) get only one functional promotion during average service span of 35 years. Main reason for such acute stagnation is the ratio (1:15) between the strength of Assistant Commissioner (Gr.A) level. In other departments of GOI the said ratio varies from 1:2 to 1:4.The Committee express their concern over the pathetic situation of man power shortage and desire both CBDT and CBEC to hasten formulation of a policy in this regard while giving interim relief to stagnating cadres. According to the Ministry, the Cadre restructuring proposal of both the Departments is under consideration of the Department of Personnel & Training. Since shortage of staff is the main reason for shortfalls in the performance of both the Departments, the Committee desires the Government to pursue the matter of cadre restructuring with the DOPT in a time-bound manner.

2. In this connection I, am to state that the Cadre Restructuring proposal of Central Board of Excise and Customs was submitted to DOPT by CBEC since long and after making drastic cut on the same, DOPT has forwarded it to the Cadre Review Committee. The proposal is still pending with such committee and waiting for final approval. Due to non creation of promotional posts ,the officers of Central Excise and Customs Department in general , Superintendents of Central Excise in particular are forced to retire in every month without further promotion after getting only single promotion in their career of 35-40 years. The drastic cuts have been made to the proposed posts at DOPT level in complete disregard to the minimum bare functional requirement and in contradictory to their own instruction relating to Cadre Restructuring. .

3. I would also like to state further that the Hon’ble Supreme Court in Civil Writ Petition No. 385/10 vide their judgments dated 03.08.11 and 30.03.12 had directed to frame new Recruitment Rules for the just & fair representation of each feeder category and also directed to make regularization of all adhoc promotions pending since 1997 within 30.06.12. The CBEC instead of framing the Recruitment Rules to maintain parity in promotions amongst all three base cadres has arbitrarily fixed again an incorrect ratio of 13:2:1 in place of 15.2.1 determined in Board meeting on 15.01.11 to award promotion to the post of Asst. Commissioner. But actually the ratio should be 17:2:1 as per sanctioned strength and 22:2:1 as per working strength of the feeder categories. As per the said ratio, around 306 (as per 13:2:1) or 410 as per 17.2.1) or 515 (as per 22:2:1) nos. of Appraisers have already been entered excess into group ‘A’ since 1997. For adjustment of such excess promotions , around 3900 (as per 13:2:1 ratio) or 5400 (as per 17.2.1 ratio ) or 6500 (as per 22:2:1 ratio) of Superintendents of Central Excise are required to be promoted to the post of Asst. Commissioner, keeping their relative seniority intact by granting them notional promotions. The posts required to grant such notional promotions can be created in course of the ensuing Cadre Restructuring, so that the verdict of Honourable Apex Court can be implemented by CBEC .

4. It is also learnt that the CBEC is not conducting DPC regularly to award promotion to the cadre of Superintendents of Central Excise. your kind attention is invited to the counter filed by the govt. in OA No. 457/12 before the Hyderabad CAT stating that the DPC’s for promotion to Group ‘A’ could not be held on regular basis due to the pendency of seniority dispute between direct recruit &promotee Appraisers. There were available 167 and 157 vacancies of Asstt. Commissioner for promotion to Group ‘A’ from Group ‘B’ during 2010-11 and 2011-12 respectively. Hence, the DPC was conducted considering the eligible retired persons of the said years on the basis of DOPT OM dt.10.04.89. But this OM dt. 10.04.89 is related to grant of regular promotions, not adhoc promotions. Non-finalization of seniority list of Appraisers was no way related to the promotions of the Superintendents on regular basis because the promotions were to be awarded in a 16 points roaster as per proposed Recruitment Rules already approved by the DOPT. The points meant for Appraisers in the roaster might have been kept blank till finalization of their dispute of seniority. In the past there was precedent of promoting Group ‘B’ officers to the post of Asstt. Commissioner excluding the disputed categories. Further, the circulars of DOPT pertaining to adhoc promotions only were applicable to the process instead of the circulars relating to the regular promotions. Since all the adhoc promotions were to abide with the decision to be taken by the CBEC in regard of new Recruitment Rules as per the decisions dt. 03.08.11 & 30.03.12 of the Hon’ble Apex Court, the DPC might have been conducted as per the proposed RR’s particularly keeping in view that only adhoc promotions were to be affected. There seems no justification for not conducting the DPC in time for adhoc promotions. The DPC for the year 2012-13 should have been merged with the said DPC as it was conducted in June,12. As per the guidelines, there was no need to involve UPSC to conduct the DPC for adhoc promotions. It is also worth to submit that the Apex Court in its orders dt. 03.08.11 & 30.03.12 has directed to implement the revised RR’s within 30.06.12. Since promotion orders were issued on 12.07.12, the same seems to be violative of the directions of the Apex Court.

4. The position of stagnation in CBEC can be removed only by upgradation of posts of Superintendents to the post of Asst. Commissioner on one time measure relaxing the present instructions of Govt. of India relating to promotions and creation of posts etc. This proposal is also expenditure neutral. At present the Superintendents of Central Excise are being allowed GP-5400 on completion of 4 years of service. The present GP of the post of Asst. Commissioner is also GP 5400.Hence on promotion to the post of Asst. Commissioner, the Superintendents of Central Excise will be granted the same grade pay.

5. Under the circumstances, it is requested to direct the concerned authority to(1) approve the cadre restricting of CBEC without any cut and create appropriate posts to award notional promotions as per verdict of Honourable Apex Court dated 03.08.11 and 30.03.12 at an early date, (2) approve the Recruitment Rules as per base cadre seniority or revise the ratio as per Honourable Apex Court dated 03.08.11 and 30.03.12 on the basis of actual cadre strength of all the feeder categories, (3) allow notional promotions to seniors in course of regularization of adhoc promotions pending since 1997 as per Honourable Apex Court dated 03.08.11 and 30.03.12 and (4) upgrade the posts of Superintendents of Central Excise those have already completed 4 years of service to the post of Asst. Commisioner.

With Kind regards.

Yours faithfully,

M.P