TaxTMI 
TaxTMI 
TaxTMI 
Grant of reward to informers and Government Servants - Review of Policy, Procedure and issue of revised Guidelines - regarding
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....d Guidelines - regarding. The existing reward guidelines issued vide Ministry's letter No. R-13011/6/2001-Cus (AS) dated 20th June, 2001, clarified vide letter No. R13011/06/2001-CUS (AS) dated 23-08-2002 and amended vide letter dated 16th April, 2004 are hereby revised. This revision takes into account cases of seizures made/ infringement or evasion of duty etc. and the recommendations made by the Committee set up to review the Reward Schemes in the Department of Revenue and various suggestions received from the field formations. 2. It has been decided with the approval of Hon'ble FM to issue completely revised fresh guidelines in tune with the various recommendations and changing scenario of smuggling, evasion of duties and service tax. Accordingly, the following revised consolidated guidelines are Laid down in supersession of earlier guidelines for grant of reward to informers and Government Servants. These guidelines shall be applicable in respect of any reward proposal, which is taken up for consideration on or after the date of issuance of these guidelines and the revised ceilings shall be applicable, even if the proposal pertaining to a case, detected before this d....
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....able while processing for final reward. The Government Servants of the rank of Joint/ Addl. Commissioner of Customs, Central Excise, Service Tax and Government Servants, of other departments/ agencies as specified in para 4 of these guidelines and of equivalent rank would therefore be eligible for reward subject to the ceiling of reward indicated in each category. 2.3.1 With reference to reward in audit cases and reward to the Authorised Representatives (ARs), the relevant date for deciding the eligibility of a case for reward is prescribed in the relevant paragraphs. 2.4 All previous guidelines issued on the subject may be deemed to be modified and revised to the extent indicated in the succeeding Para. The guidelines procedure contained in the previous orders/instructions issued by the Ministry, in so far as they are not inconsistent with the present/revised guidelines shall, however, remain in force. 2.5 Any reference in these guidelines to the post of Chief Commissioner/ Director General shall include a reference to the post of Principal Chief Commissioner/ Principal Director General, as the case may be. Similarly, any reference in these guidelines to the post of Commissione....
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.... infringements of law, unearthing and working out duty/tax involved etc. 3.3.3 In cases of post investigation work:- Defending the case in CESTAT, High Court/Supreme Court/Settlement Commission, resulting in confirmation of Duty/service tax evaded / infringement of Law established/settlement of the case, the criteria given in respective Para will apply. 3.3.4 In cases of Audit/Special Audit in Central Excise and Post Clearance Audit in Customs: - Outstanding contribution in detecting major cases of evasion of Central Excise Duty, Customs Duty or Service Tax, the criteria given in respective Para will apply. 3.4 Assignment of Reward (transfer of reward and payment of reward in the event of death of informer/Government Servant) : As the reward under these guidelines is in the nature of ex-gratia payment, no assignment (transfer) thereof made by the informer will he recognized. However, in the event of death of the informer/Government Servant, the authority competent to grant rewards may grant reward to legal heirs or nominees of an informant/Government Servant of an amount not exceeding the amount that would have been payable to the informant /Government Servant had he/she not die....
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.... be recognised and rewarded. Government Servants up to the level of Group 'A' officers of the rank of Additional Commissioner of Customs & Central Excise and Service Tax, involved in post-investigation work including those representing the Department before the Settlement Commission as well as those posted in adjudication. COFEPOSA, legal or Prosecution Cells of the Commissionerate/Custom House will be considered for grant of lump-sum payment of reward, not exceeding ₹ 50,000/- in each case, depending upon the role played by them. Further exceptional work demonstrated in finalising adjudication in various COFEPOSA. Legal or other proceedings resulting in favourable decisions like confiscation of seized goods, confirmation of duties demanded and/or imposition of penalties, detention/convictions etc. would be recognised. 4.6 Government Servants up to the level of Group 'A' officers of the rank of Additional Commissioner of Customs, Central Excise and Service Tax, engaged in audit/special audit/ Post Clearance Audit and who have made outstanding contribution in detecting major cases of evasion of Customs duty/ Central Excise duty and/or Service Tax may also be c....
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....ed by the informer or prior intelligence developed by the Government Servants, the informers and Government Servants will be eligible for reward upto 20% of recovery of drawback claimed fraudulently and/or recovery of duties evaded under various Export Promotion Schemes announced by the Government from time to time, plus amount of fine/penalty levied/imposed and recovered. 5.2 In respect of opium and other narcotic drugs, controlled substances, psychotropic substances and other synthetic drugs etc. seized under the provisions of Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, the overall ceiling of reward will be as per the revised specific rates indicated in Annexure A-1 and Annexure A-2. In respect of Gold and Silver seized under the provisions of Customs Act, 1962 and in cases of detection of import of gold / silver in contravention of provisions of Customs Act, 1962 the overall ceiling of reward will be as per specific rates indicated in Annexure A-3. These ceilings would be subject to periodical revision in the light of the price fluctuations of these items, for which periodical intimations may be sent to the DRI/NCB, who, in turn, will send suitable recommendati....
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....anctioning authority for which proposals may be sent to the Ministry, through DGRI or DGCEI, as the case may be. 5.5 The ceiling limit of reward to private persons (engaged in office for help in office work relating to intelligence/investigation and post investigation work) earlier fixed at ₹ 1000/- vide reward instructions dated 03.12.1980 shall now be ₹ 2,500/ in each case. 6. PAYMENT OF ADVANCE / INTERIM REWARD:- 6.1 Advance/Interim reward may be paid to informers and Government Servants upto 50% of the total admissible reward immediately on seizure in respect of the following categories of goods, namely :- a) gold / silver bullion; and b) arms and ammunition, explosives. 6.2 In other cases of outright smuggling, involving seizures of contraband goods, including foreign currency, advance/interim reward upto 25% of the total admissible reward may be paid to the informers and Government Servants, immediately after seizure, if the authority competent to sanction reward is satisfied that the goods seized are reasonably expected to be confiscated on adjudication and the adjudication order is likely to be sustained in appeal/revision proceedings. However, in case of ....
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....ment Commission. It is further clarified that reward may also be paid in cases where recoveries are made under voluntary disclosure schemes such as Voluntary Compliance Encouragement Scheme (VCES) provided the initiation of the investigation preceded the filing of declaration by the assessees under such voluntary disclosure schemes. 7. PAYMENT OF FINAL REWARD 7.1 Final rewards, both to Government Servants as well as informers, should be sanctioned and disbursed only after conclusion of adjudication/appeal/revision proceedings, as well as closure of proceedings mentioned at para 6.5. In case of narcotic drug, psychotropic substance and controlled substance, one time final rewards, both to Government Servants as well as informers, should be sanctioned and disbursed only after compliance of provisions under Para 4(1) of the Notification no. GSR 38(E) dated 16th January 2015 issued under Section 52 A of the Narcotic Drugs & Psychotropic Substances Act, 1985 and filing of prosecution complaint before the designated Court. The final reward will be determined on the basis of the net sale proceeds of goods seized/confiscated (if any) and/or the amount of additional duty/fraudulently clai....
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....ner, as the case may be, is satisfied that the review of the final reward sanctioned by the competent authority is absolutely necessary to redress any grave injustice meted out to the Informer/Government Servant and make a recommendation to the Board to this effect, the Government may review the final reward sanctioned on the specific recommendations of the Board. 9.2 Since reward is an ex-gratia payment, only one representation by the informer against the amount of reward sanctioned should be entertained after being submitted through the reward sanctioning committee/authority to the Jurisdictional Chief Commissioner/ DGRI/DGCEI as the case may be, who, if deemed fit will forward the same with his recommendation to the Board. The Government may review the reward on the recommendations of the Board. No further representation or petition against the decision regarding grant of reward would be entertained either from the informer or any person on his behalf. 10. MECHANISM TO MONITOR THE REWARD SANCTIONED TO THE GOVERNMENT SERVANTS 10.1 To ensure that the Government Servants do not exceed the ceiling of ₹ 20 Lakh of total reward during their career, all rewards sanctioned to t....
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....idelines. 11.2 Additional information in respect of identity of informer: At present DRI -1 / AE-I is filed by an officer, who records the information stating gist of intelligence and action to be taken along with the sealed cover containing an information slip containing Left Thumb Impression (LTI). Further, in order to reduce delay and provide adequate safeguards, informer may, on his own wish provide following additional information on the information slip/ written information viz. Visible identification marks (two), Height, Date of birth/Age. However, the additional information is not considered as mandatory for grant of reward to informer. No reward shall be withheld for non-furnishing of additional information. PART II SCHEME OF GRANT OF REWARD TO INFORMERS AND GOVERNMENT SERVANTS IN CASES OF RECOVERY FROM TAX DEFAULTERS As already circulated vide Ministry's Letter No. 13011 / 3 / 2004 - Cus (AS) dated 12.08.2005, the guidelines in respect of grant of reward to informers and Government Servants are extended to cases of recovery from tax defaulters as per following provisions:- (i) The reward scheme shall be extended to grant of suitable reward to an informer who give....
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....le in respect of post investigation work. In those cases where the case was originally booked by the officer, reward shall be given out of the total reward available in case for the officer category as per existing policy. Annexure-A-1 Rates of Reward in respect of substances seized under the provisions of Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 (Para 5.2 of Reward Guidelines) Sl. No. Commodity Proposed rate of maximum reward (Rs. per kg) Prescribed purity 1. Opium 6,000/- (20% of present illicit price) Standard Opium 2. Morphine base and its salts 20,000/- (20% of present illicit price) 90% or more of anhydrous morphine 3. Heroin and its salts 1,20,000/- (20% of present illicit price) 90% or more of diacetyl morphine 4. Cocaine and its salts 2,40,000/- (20% of present illicit price) 90% or more of anhydrous cocaine 5. Hashish 2,000/- (20% of present illicit price) With THC content of 4% or more 6. Hashish Oil 10,000/- (20% of present illicit price) With THC content of 20% or more 7. Ganja 600/- (20% of present illicit price) Should be commercially acceptable as Ganja 8. Mandrax Ta....
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....e purity is less than the one prescribed above. For 10 gm gold and for 1kg of silver the admissible reward shall be- (i) When the gold is absolutely confiscated and the goods are not redeemed to the noticee, the quantum of reward shall be ₹ 1,500/- per 10 gms. Similarly, with regard to confiscation of silver, the quantum of reward shall be ₹ 3000/- per one Kg. (ii) When the gold and silver, including jewellery and articles thereof are seized, and in cases of detection of import of gold / silver in contravention of provisions of customs Act, 1962 (where after issuance of SCN / completion of adjudication proceedings, an option to redeem goods is excercised), then quantum of reward shall be calculated as per the actual realization of duty, fine and penalty as applicable to similar such detection in terms of the reward rules. (iii) In case of absolute confiscation of gold and silver jewellery, the quantum and ceiling of rewards to informer and Government servants will be 20% of the Net sale proceeds of the jewellery plus amount of penalty levied / imposed and recovered. Annexure-B Monetary limit wise Reward Sanctioning Authority 1. Reward To informers Monetary ....