The Supreme Court has upheld a Service Tribunal ruling requiring the FBR to provide headquarter allowance to more than 40 time-scale employees.
The Supreme Court has dismissed appeals filed by the Federal Board of Revenue (FBR) and upheld a Service Tribunal decision directing the payment of headquarter allowance to more than 40 employees serving on a time-scale basis.
The Supreme Court’s ruling came during a hearing on Tuesday involving a dispute over the headquarter allowance provided to FBR employees.
During the hearing, the FBR’s counsel argued that government employees were generally entitled to an executive allowance, while FBR employees had been granted a headquarter allowance in place of the executive allowance. According to the counsel, the headquarter allowance was primarily intended for officers in Grade 17.
The lawyer maintained that the employees who approached the court were not Grade 17 officers but employees serving under a time-scale arrangement. Therefore, he argued, they were not eligible for the allowance.
The FBR’s counsel also contended that the matter did not fall within the jurisdiction of the Service Tribunal and requested that the Finance Division be issued a notice.
Supreme Court Seeks Original Summary
During the proceedings, the bench sought clarification on the approval process for the allowance. The chief justice asked whether the allowance had been approved by the prime minister.
Justice Mian Gul Hassan Aurangzeb expressed concern over the issue and directed that the original summary concerning the allowance be produced before the court.
The FBR’s original summary was presented during the hearing. After examining the document, the chief justice observed that it contained no provision excluding time-scale employees from receiving the allowance.
The court further observed that if the FBR intended to exclude time-scale employees, it would have to submit a fresh summary for that purpose.
More than 40 FBR employees had previously approached the Service Tribunal, seeking payment of the allowance on the basis of their time-scale status. They maintained that they were entitled to the allowance under the applicable departmental rules.
After reviewing the record and legal requirements, the Service Tribunal had ruled in favor of the employees. The FBR subsequently challenged the decision before the Supreme Court.
The Supreme Court has now rejected the FBR’s appeals and maintained the Service Tribunal’s decision, providing relief to the affected employees.
The ruling also highlights the importance of clear language in government summaries and administrative decisions, particularly when determining employees’ eligibility for allowances and other benefits.
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