Supervision Charges Recovery with revised Dearness Allowance 34%

Gazette Reference: Accounts Branch Circular No. 13, dated 06.09.2022
Type: Non-Fee Administrative Circular — Supervision Charges Recovery
Authority: Commissioner of State Excise, Maharashtra State, Mumbai
Subject: Recovery of supervision charges based on revised Dearness Allowance (DA) rates of 31% and 34% under 7th Pay Commission, along with revised transport allowance rates.

SUMMARY OF CHANGES

This circular prescribes the methodology and rates for recovery of supervision charges (पर्यवेक्षण शुल्क) from licensees, reflecting updated emoluments of excise enforcement staff under the 7th Pay Commission. The charges are calculated based on the actual cost of deploying excise personnel (Deputy Superintendent, Inspector, Sub-Inspector, Assistant Sub-Inspector, Jawan) for supervision duties at licensed premises.

What Changed:

Previously, supervision charges were calculated using older DA rates (28% and 31%). This circular updates the calculation to incorporate:

1. Dearness Allowance (DA): Increased to 31% from 01.07.2021 and 34% from 01.01.2022 (per Finance Department GRs dated 30.03.2022 and 17.08.2022).

2. Transport Allowance: Revised rates effective 01.04.2022 (per Finance GR dated 20.04.2022), varying by pay level and city classification:

   • Level S-20 and above: ₹5,400 (Greater Mumbai/Nagpur/Pune urban clusters), ₹2,700 (other places)
   • Level S-7 to S-19: ₹2,700 / ₹1,350
   • Level S-1 to S-6: ₹1,000 / ₹675
   • Special rule: S-1 to S-6 staff drawing ₹24,200+ basic pay get higher rates (₹2,700 / ₹1,350)

3. House Rent Allowance (HRA): Continues at 27%, 18%, or 9% depending on city classification (X/Y/Z class cities), effective from 01.07.2019 when DA exceeded 25%.

Practical Effect:

Licensees must now pay higher daily supervision charges to recover the increased cost of excise staff deployment. The circular provides three detailed annexures (प्रपत्र 1, 2, 3) calculating daily rates for each post across three city tiers:

• Annexure 1 (X-Class Cities): Greater Mumbai, Pune clusters
• Annexure 2 (Y-Class Cities): Nagpur, Nashik, Aurangabad, Solapur, Kolhapur, etc.
• Annexure 3 (Z-Class Cities): All other unclassified towns

KEY DETAILS

Revised Daily Supervision Charges (01.01.2022 to 31.03.2022) — Example Rates:

X-Class Cities (e.g., Greater Mumbai, Pune):

• Deputy Superintendent: ₹3,486/day (A-1 cities), ₹3,484/day (A-cities)
• Inspector: ₹3,013/day (A-1), ₹3,011/day (A)
• Sub-Inspector: ₹2,436/day (A-1), ₹2,434/day (A)
• Assistant Sub-Inspector: ₹1,654/day (A-1), ₹1,653/day (A)
• Jawan: ₹1,564/day (A-1), ₹1,562/day (A)

Y-Class Cities:

• Deputy Superintendent: ₹3,325/day (A-cities), ₹3,303/day (B-1), ₹3,301/day (B-2), ₹3,297/day (K-cities)
• Inspector: ₹2,873/day (A), ₹2,871/day (B-1), ₹2,869/day (B-2), ₹2,865/day (K)
• Sub-Inspector: ₹2,323/day (A), ₹2,321/day (B-1), ₹2,319/day (B-2), ₹2,315/day (K)
• (Full breakdown in Forms 1-3)

Z-Class Cities (unclassified):

• Deputy Superintendent: ₹3,138/day
• Inspector: ₹2,727/day
• Sub-Inspector: ₹2,203/day

Components of Supervision Charges:

Each calculation includes:

1. Revised average pay (7th Pay Commission Level × 2.57 multiplier)
2. Dearness Allowance (34% from 01.01.2022)
3. City Compensatory Allowance (varies by city class)
4. House Rent Allowance (27%/18%/9% based on city tier)
5. Transport Allowance (revised April 2022 rates)
6. Washing Allowance (₹110/₹40/₹20)
7. Leave Salary Contribution (19% of basic + DA)
8. Pension Contribution (14% of basic + DA, from 01.04.2019 for NPS employees)

Incentive/Tribal Allowance:

Continues at graduated rates based on old basic pay scale (pending next GR):

• ₹100/month for pay <₹3,050
• ₹200 for ₹3,050–4,589
• ₹300 for ₹4,590–6,499
• ₹400 for ₹6,500–9,999
• ₹500 for ₹10,000+

DA Progression Table (Historical Reference):

The circular documents DA increases from 1.1.2016 (0%) through 1.1.2022 (34%), with special note that:

• DA jumped from 17% to 28% on 01.07.2021 (consolidating three increments)
• DA remained frozen at 17% from 01.01.2020 to 30.06.2021 despite accrual

EFFECTIVE DATE

• Retrospective recovery of supervision charges at revised rates:

  • 31% DA rate from 01.07.2021
  • 34% DA rate from 01.01.2022
  • Revised transport allowance from 01.04.2022

• Advance recovery also authorized for future periods using these rates.

AUTHORITY

Issued by the Commissioner of State Excise under approval, referencing:

• Finance GR No. MBhVa-1321/Pra.Kra.14/Seva-9, dt. 30.03.2022 (31% DA)
• Finance GR No. MBhVa-1322/Pra.Kra.8/Seva-9, dt. 17.08.2022 (34% DA)
• Finance GR No. VaHaBha-2020/Pra.Kra.03/2020/Seva-5, dt. 20.04.2022 (Transport allowance)
• Earlier GRs on HRA, city classification, and pension contributions

Circulated to: All Divisional Deputy Commissioners of State Excise for implementation.

Note: This is an administrative directive on cost recovery methodology, not an amendment to the Bombay Prohibition Act or Rules. Licensees subject to supervision requirements must pay these revised charges as pass-through costs for government personnel deployed at their premises. The detailed Forms 1-3 provide ready-reckoner tables for billing purposes across all city tiers.