CBIC Reward Scheme for Informers

The Central Broad of Indirect Taxes and Customs (CBIC) has notified about the reward scheme for Informers.

The field formations [Commissionerates of Customs/Central Taxes (Central Goods and Services Tax (GST), Integrated Goods and Services Tax (IGST), Central Excise) and the Directorate General of Revenue Intelligence (DRI) and Directorate General of GST Intelligence (DGGI)] of Central Board of Indirect Taxes and Customs give reward to the informers (those who give information to the Department on smuggling of contraband and evasion of duties and taxes) under “The Guidelines for grant of Reward to informers and Government Servants, 2015″.

The guidelines are applicable for grant of rewards to the informers in respect of cases of seizures made and/or infringements/evasion of duty/ service tax etc. detected, under the provisions of the following Acts:

(a) The Customs Act, 1962;

(b) The Central Excise Act, 1944;

(c) Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985;

(d) Finance Act, 1994 as amended to an extent the said Act Contains provisions relating to Service Tax;

(e) The Central Goods and Services Tax Act, 2017;

(f) The Central Goods and Services Tax (Extension lo Jammu and Kashmir ) Act;

(g) The Integrated Goods and Services Tax Act, 2017; and

(h) The Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017

These guidelines will also be applicable for:

(a) grant of rewards in respect of cases of detection of Drawback frauds or abuses of duty exemption schemes under various Export Promotion Schemes announced by the Government from time to time, unearthed on the basis of specific prior information provided by the informer or prior intelligence developed by the Government Servants;

(b) grant of reward to informers (who give information relating to assets, immovable properties etc. of persons from whom arrears of duty, tax, fine, penalty etc, are recoverable and the information results in the recovery of arrears);

(c) grant of reward to an informer who gives information regarding the where abouts, assets, immovable properties etc. of persons from whom arrears of duty, tax, fine, penalty etc. are recoverable and the information results in recovery of arrears.

Reward should not be granted as a matter of routine: Reward is purely an ex-gratia payment which , subject to guidelines , may be granted based on the judgment of the authority competent to grant rewards and taking into account facts and circumstances of each case and cannot be claimed by anyone as a matter of right.

Criteria for grant of reward: In determining the reward which may be granted, the authority competent to grant reward will keep in mind the following:

(a) The specificity and accuracy of the information, the risk and trouble undertaken, the extent and nature of the help rendered by the informer, whether information gives clues to persons involved in smuggling, infringements, evasion of duty, tax etc.;

(b) special initiative, efforts and skills/ ingenuity displayed leading to the recovery of Government dues during the course of investigation admitting their liability by way of voluntary deposit;

(c) whether the information led to seizure of contraband goods/ detection of infringements /evasion of duty /tax, the owners/ organizers/ financiers/ racketeers and the carriers have been apprehended or not;

(d) the reward has to be case specific and not to be extended, in respect of other cases made elsewhere/against other parties on the basis of a similar modus operandi;

(e) in the cases of recovery of arrears of duty/tax. the grant of reward shall be considered only in those cases where the Chief Commissioner is satisfied that all possible efforts have been made by the Departmental officers to trace the defaulter/ details of defaulter ‘s property and Information provided by the informer has been instrumental in the recovery of arrears.

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 be recognized. However, in the event of death of the informer 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 had he/she not died.

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