- (1.) The respondents are Inspectors of Central Excise at Calcutta. They were in the pay scale of Rs. 425-800. It was revised to Rs. 500-900 with effect from 1/01/1980. Consequently, their pay was fixed in the revised scale of Rs. 500. 00 being the minimum in the revised scale. It was, however, ordered that they would be entitled to next increment not on their normal date of increment in the lower scale but after completion of twelve months of service in the revised scale, that is, with effect from 1/01/1981. This direction was issued perhaps following the office memorandum dated 9/01/1984. The material portion of the office memorandum reads : "Date of next increment in case of Fixation at the minimum: 2. In cases where the minimum pay of the revised scale is higher than the pay drawn by the government servant in the old scale, his pay will be fixed at the minimum of the revised scale. A question has been raised as to when the government servant will be eligible to draw the next increment after such initial pay fixation at the minimum of the scale. 3. The matter has been carefully considered. It is hereby clarified that the next increment in the cases of the kind' mentioned in the preceding paragraph should be allowed in the revised scale, only after completion of full incremental period of 12 months/24 months, as the case may be, at that stage, from the date of Fixation of initial pay in the revised scale, subject to the provisions of F. R. 26. "
(2.) Challenging the validity of the office memorandum, the respondents moved the central Administrative tribunal for relief. They have succeeded before the tribunal. The Union of India challenges the legality of the decision of the tribunal.
(3.) Counsel for the State, inter alia, contended that when the pay is Fixed at a stage higher than the pay drawn in the old scale, then the increment shall accrue only after completing the period of twelve months. The service rendered in the lower scale cannot be counted for earning increment in the higher scale.;