The Central Board of Indirect Taxes and Customs (CBIC) offers monetary rewards to informers who provide credible information leading to seizures of contraband goods or detection of duty evasion under various laws. This rewards scheme is governed by “The Guidelines for Grant of Reward to Informers and Government Servants, 2015”.
Overview of the Rewards Scheme
– The rewards scheme is applicable for providing information under the Customs Act, Central Excise Act, NDPS Act, Finance Act (Service Tax provisions), Central GST Act, and other GST-related laws.
– It also covers cases of drawback frauds, recovery of arrears, and information on assets for recovery of government dues.
– Rewards are granted by field formations like Customs & CGST Commissionerates, DRI, DGGI. The quantum depends on factors like accuracy of information, seizures made, detection of evasion, cooperation by informer etc.
– The maximum reward is 20% of net sale proceeds of seized goods, amount of additional duty/tax recovered, amount of drawback fraudulently claimed etc.
– For narcotic drugs and psychotropic substances, the ceiling is as per prescribed rates based on type of substance. For gold/silver seizures, prescribed rates apply.
– For recovery of arrears, maximum 5% of amount recovered. Rewards are tax-free.
Eligibility and Payment of Rewards
– Anyone providing credible information is eligible. Rewards are ex-gratia, not a right.
– Advance reward up to 50% of total admissible amount is paid for gold/silver bullion, arms & ammunition seizures.
– For outright smuggling cases, advance reward up to 25% of total admissible amount can be paid after seizure and adjudication.
– In other cases, advance reward up to 25% of total admissible amount can be considered after SCN if duty/tax paid voluntarily.
– Final reward is paid after conclusion of adjudication/appeal/revision. Total rewards cannot exceed prescribed ceiling.
– For NDPS cases, final reward is after prosecution complaint is filed.
– Rewards can be paid to legal heirs/nominees in case informer dies.
Reward Sanctioning Authorities
– Junior officers like Commissioner can sanction up to Rs 10 lakhs.
– Commissioners’ Committee can sanction from Rs 10 lakhs to Rs 25 lakhs.
– Chief Commissioner-level Committee for Rs 25 lakhs to Rs 50 lakhs.
– Apex Committee for above Rs 50 lakhs.
Confidentiality and Protection of Informers
– Informers have to provide undertaking about accuracy of information.
– Their identity is kept strictly confidential.
– Stringent action under IPC for false information.
– Informers can provide additional identification details if they wish.
Conclusion
The rewards scheme provides incentives to citizens for cooperating in detection of customs duty evasion and smuggling. The process ensures confidentiality and safety of informers. The monetary rewards can be substantial in big cases. The scheme thus augments the government’s anti-evasion efforts.
CBIC Information Brochure on Rewards Scheme for Informers (Customs/GST) – Nov. 2023