Review Ordered for Appellant's Reward Claim; Potential Increase with Interest Possible Within Six Months.

The SC directed the Committee to reconsider the appellant's entitlement to a reward under the Ministry of Finance's policy, as the initial decision lacked reasoning. The appellant, initially sanctioned Rs. 5.50 lakhs, claimed entitlement to 20% of the evaded duty, amounting to Rs. 51.87 lakhs. The Committee had previously increased the reward to Rs. 9.45 lakhs without proper justification. The SC mandated a decision within six months, allowing for the possibility of additional payment with interest, partially modifying the HC's judgment and allowing the appeal without costs.

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Issues involved:
The entitlement of the appellant to a reward under the "Reward to informers and Government Servants Review of Policy-Procedure and Guidelines" issued by the Ministry of Finance, Central Board of Excise and Customs, and the appropriate remedy for the appellant's grievance.

Entitlement to Reward:
The appellant claimed entitlement to a reward under Clause 4.1 of the Policy, amounting to 20% of the duty evaded plus fine and penalty imposed. Despite being entitled to Rs. 51.87 lakhs, he was only sanctioned Rs. 5.50 lakhs as a reward. The High Court directed the appellant to file a civil suit due to disputed facts. The respondents acknowledged the appellant's entitlement under Clause 4.1 but relied on a note sheet to restrict the reward to Rs. 5.50 lakhs. However, the Supreme Court found that the Committee's decision lacked reasoning and directed reconsideration by the Committee.

Committee's Decision:
The Supreme Court observed that the Committee's decision did not provide reasons for restricting the reward to Rs. 5.50 lakhs, despite the Policy allowing up to 20% of the evaded amount. The Court noted the non-application of mind by the Committee and directed the Committee to reconsider the appellant's case. The Court emphasized that reasons for a decision must be recorded by the authority and cannot be supplied later through affidavits.

Reconsideration and Enhanced Reward:
The Court directed the Committee to reconsider the appellant's case, considering the pleadings and documents on record. It was highlighted that the Committee previously enhanced the reward to Rs. 9.45 lakhs without proper reasoning, indicating a lack of application of mind. The Committee was instructed to give the appellant an opportunity to be heard and determine if he is entitled to any additional amount beyond the Rs. 9.45 lakhs already paid.

Decision and Timeline:
The Committee was mandated to make an appropriate decision within six months from the judgment date, considering any additional amount due to the appellant. If the appellant is found entitled to more, the Committee should recommend payment with reasonable interest. The impugned judgment was modified accordingly, partially allowing the appeal without costs.

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