Hyderabad Tax Officers Face Prolonged Delay in Pay Arrears Despite Supreme Court Ruling
In a glaring case of administrative inefficiency, hundreds of superintendents and inspectors in the Hyderabad zone of Central Tax continue to wait for long-pending pay arrears, despite final orders from the Central Administrative Tribunal (CAT), Telangana High Court, and the Supreme Court. This situation exposes serious bottlenecks within the Pay and Accounts Office (PAO) in Hyderabad, where procedural objections have stalled payments for months, even after the Central Board of Indirect Taxes and Customs (CBIC) issued clear instructions for expeditious clearance.
Court Orders Ignored as Payments Remain Stuck
While other zones across India have successfully implemented court rulings to disburse arrears, the Hyderabad zone lags behind, affecting over 1,000 serving and retired officers. Shockingly, some employees have not yet received their salaries for December 2025 due to unresolved pay anomalies. A contempt case related to the non-implementation of these court orders is currently pending before the Telangana High Court, adding legal pressure to the ongoing delay.
In a detailed letter to the principal chief controller of accounts at CBIC in Delhi, the All India Association of Superintendents of Central Tax highlighted that superintendents and inspectors filed 11 original applications before the CAT Hyderabad bench, seeking correction of pay scales. The CAT, in its common order dated January 9, 2024, directed notional pay fixation from January 1, 1996, with consequential arrears from April 21, 2004. This order was upheld by the Telangana High Court on August 9, 2024, and the department's special leave petition was dismissed by the Supreme Court on February 28, 2025, making the rulings final and binding.
Bribery Case Casts Shadow Over Administrative Processes
Despite the issuance of revised pay fixation orders, arrear bills have been drawn for only a small fraction of the 1,190 applicants, leaving a large number of officers, including retirees, without their due payments. The association has raised concerns about this selective implementation, which undermines the authority of the judiciary and exacerbates financial hardships for affected personnel.
Compounding the issue, the association referenced a CBI case stemming from a complaint filed by a retired assistant commissioner on August 14, 2025. An FIR has been registered citing offences under the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act, casting a shadow over the administrative processes and hinting at possible malpractices within the system. This bribery allegation adds a layer of complexity to the already delayed payments, suggesting deeper systemic issues that may be impeding fair and timely disbursement.
The persistent delay in Hyderabad, contrasted with smoother implementations in other zones, points to localized administrative failures that require urgent intervention. Officers and retirees are left in financial limbo, awaiting justice that has been legally mandated but not yet delivered on the ground.
