Reward to Government servants and informers is granted as an incentive and in recognition of their contribution in bringing the tax evaders to book. The basic principle of the reward scheme is that it is an ex-gratia payment and is calculated as a percentage of the duty evaded plus the amount of fine and penalty levied/imposed and recovered. Thus the scheme envisages payment of part of the amount recovered by the Government from tax-evaders as reward to the informer and Government servants.
Scope and Quantum
Reward can be sanctioned, interalia, in all cases detected under the provisions of the Central Excise Act, 1944 and Finance Act, 1994. Informers are eligible for a maximum reward up to 20% of the net sale-proceeds of the contraband goods seized and/or the amount of duty/taxes evaded plus the amount of fine and penalty levied/imposed and recovered. It deserves to be mentioned here that reward is purely an ex-gratia payment and cannot be claimed by anyone as a matter of right.
Reward to the Informer
Within the prescribed limits, reward can be sanctioned to the informer taking into consideration the following factors:-
- (i) Accuracy and specificity of information,
- (ii) Risk involved and efforts taken for collection of intelligence,
- (iii) Efforts made in securing the information,
- (iv) Help rendered by him in detection and investigation of duty evaded.
At the time of collection of information from an informer an undertaking should be taken from him that he is aware that if the information is found to be false he would be liable for prosecution. The informer should further undertake that he understands that the extent of reward depends on the precision of the information and the Government is not obliged to pay him the maximum admissible reward of 20%. These undertakings are useful in avoiding un-necessary litigation. It may, however, be noted that though reward is an ex-gratia payment in the absolute discretion of the competent authority. For details, the link provided may be followed:
DGCEI rewards the Informers and the Officers, commensurate with the quality and specificity of intelligence, efforts put in and the results achieved. During 2016-17, Rs. 10.06 Crore was disbursed as reward to the Informers and Officers.
Jurisdictional Set Up
|Set-Up (9 Zonal Units + 27 Regional Units)|
|1||Ahmedabad|| (a) Vadodara
(c ) Rajkot
(c ) Mangalore
|3||Chennai|| (a) Coimbatore
(c ) Trichy
|5||Kolkata|| (a) Guwahati
(c ) Durgapur
|6||Mumbai|| (a) Pune
(c ) Goa
(c ) Dehradun
|8||Bhopal|| (a) Indore
(c ) Raipur
|9||Hyderabad|| (a) Vizag
(c ) Bhubaneshwar