F.No. S/26-243/2005 A(G)
P.N.No. 68/2005
IMP No. 50/2005
EXP No. 50/2005

PUBLIC NOTICE NO. 68/2005 DATE : 26/10/2005

Grant of Reward to informers in cases of recovery from tax Defaulters –Reg.

Attention of all the members of Trade, CHAs & others concerned is invited to the existing guidelines of the Ministry in respect of grant of reward to informers and Government Servants in cases of evasion of duty, seizures made, smuggling, etc. Now the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance has decided to extend the reward scheme to cases of recovery from tax defaulters also.

The provisions in this regard are as follows:-

(i) The scheme shall be extended to grant of suitable reward to an informer who gives information regarding the whereabouts, assets, immovable properties etc. of persons from whom arrears of duty, tax , fine, penalty etc. (under the provisions of the Customs Act, 1962, the Central Excise Acr, 1944, and the Finance Act, 1994 in so far as the said Act contains provisions relating to Service Tax) are recoverable and the information results in recovery of arrears.

(ii) The grant of reward shall be considered only in those cases where the Chief Commissioner is satisfied that

a) all possible efforts have been made by the Departmental Officers to trace the defaulter/details of defaulter’s property, and

b) information provided by the informer has been instrumental in the recovery of arrears.

(iii) The reward in such cases can be given up to a maximum of 5% of the amount recovered and the quantum of reward will be determined by such factors as the nature, accuracy, actionability and efficacy of the information, and other attendant factors.

(iv) In those cases where the case was originally booked on the basis of information provided by an informer, reward to the informer(s) giving information leading to arrears recovery shall be given out of the total reward available in the informer category as per existing policy.

(v) In order to expedite arrears recovery, the jurisdictional Commissioner may, if necessary, invite information from the general public through notices in the print/electronic media in a case where recovery of arrears is pending on account of the fact that the whereabouts/details of assets of the defaulter are not known, and the Chief Commissioner is satisfied that all possible efforts have been made by the Departmental officers in this regard.

(vi) For removal of doubts, it is clarified that reward in cases of arrears recovery shall be admissible only to informers and not to officers.

2. In view of the above, all the members of Trade, CHA & others concerned are requested to take note of the above-mentioned decision of the Finance Ministry and contents of this Public Notice. The contents of this Public Notice may be given wide publicity among the members of the Trade.

( A.K. PRASAD)
COMMISSIONER OF CUSTOMS (IMPORT)
MUMBAI

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