GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS
(ANTI-SMUGGLING UNIT)
NEW DELHI
Circular No. 20/2015-Customs
Dated: July 31, 2015
To
1. All Chief Commissioners of Customs/Customs (Preventive)
2. All Chief Commissioners of Central Excise
3. All Chief Commissioners of Customs, Central Excise And Service Tax
4. All Chief Commissioners of Large Tax Payers Unit
5. Director General, DRI/DGCEI/Vigilance/Inspection/Audit/Systems, New Delhi
6. Director General, NACEN, Faridabad
7. Director General, Service Tax, Mumbai
8. Principal Commissioner, Directorate of Logistics, New Delhi
9. All Commissioners of Customs/ Customs (Preventive)
10. All Commissioners of Central Excise And Service Tax
11. All Commissioners of Customs, Central Excise And Service Tax
12. All Directorates under CBEC
13. All sections of CBEC
14. Webmaster, CBEC Website.
Subject:- Grant of
reward to informers and
Government Servants – Review of Policy, Procedure and issue of revised
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 Said 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 date, and final reward is not yet granted.
3. Please acknowledge receipt of this letter.
Yours faithfully,
(A.C. MALLICK)
Under Secretary (AS)
Tele/fax: 26177328
Email: [email protected]
No. 13011/001/2013-Cus (AS)
GUIDELINES FOR GRANT OF REWARD TO INFORMERS AND GOVERNMENT SERVANTS, 2015
1. Short title:-
These guidelines may be called as “The
Guidelines for grant of Reward to informers and Government Servants, 2015”.
2. Commencement,
application and scope of the Reward Guidelines
2.1 Part-1 of these guidelines would be applicable for grant of rewards to the
informers and Government Servants in respect of cases of seizures made and/or
infringements/evasion of duty / service tax etc. detected, under the provisions
of the following Acts:-
(1) The Customs Act, 1962;
(2) The Central Excise Act, 1944;
(3) Narcotic Drugs & Psychotropic Substances (NDPS) Act, 1985.
(4) Finance Act, 1994 as amended to an extent the said Act contains provisions
relating to Service Tax.
These guidelines will also be applicable for 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.
2.2 Besides. Part
II of these guidelines would
be applicable to 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) and
Government Servants who put in commendable efforts to effect recovery as per
conditions specified therein.
2.3 These reward guidelines would be applicable from the date of issue. Subject
to provisions of Para 2.1. these guidelines will regulate the grant and payment
of reward to informers and departmental officers in cases which have not been
processed till date of issue of these guidelines and apply to all future cases
of reward. The proposal where final reward has been sanctioned before the date
of this guideline shall not be re-opened. However, in cases where only advance
reward has been recommended by the Committee on or before the date of issue of
these guidelines whether the advance reward has already been disbursed or
pending disbursement, the new guidelines would be applicable 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 Commissioner/Additional Director
General (ADG) shall refer to the post of Principal Commissioner/ Commissioner/
Principal Additional Director General(Pr. ADG)/Additional Director General(ADG).
PART-I
3. PRINCIPLES
GOVERNING GRANT OF REWARD:-
3.1 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 gram rewards and taking into
account facts and circumstances of each case and cannot be claimed by anyone as
a matter of right.
3.2 Reward should not be sanctioned for routine and normal nature of work.
3.3 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:-
3.3.1 In
cases of collection of information / intelligence, in respect of cases of
seizure made out/or infringements/evasion of duty/service tax etc:- 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,
service tax or their associates etc., the risk involved for the Government
Servants in working out the case, the difficulty in securing the information,
the extent to which the vigilance of the staff led to the seizure, detection of
infringements/evasion of duty/service tax special initiative, efforts and
skills/ ingenuity displayed leading
to the recover) of Government dues during the course of investigation admitting
their liability by way of voluntary deposit and whether, besides the seizure of contraband goods
/detection of infringements/evasion of duty/service tax, the owners/organizers/ financiers/racketeers
as well as the carriers have been apprehended or not. 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.
However, the Government Servants will be entitled for reward as per the normal
guidelines when they book a case in their jurisdiction on the basis of modus
operandi circulars issued by the Board/DRI/DGCEI.
3.3.2 In
cases of successful investigation:- Special efforts made by
Departmental officer in in-depth investigation and collection of evidence for
establishing the various 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 died. The
earlier instructions issued vide F. No. 13/21167-Ad-V dated 17.10.1968 on
payment of rewards in Customs Seizure cases etc. to the persons who have died,
retired and resigned or were discharged, removed or dismissed from service may
be referred.
3.5 Prohibition
of reward to Government Servants in certain cases: No
reward shall be granted to a Government Servant who as an informer furnishes
information or evidence obtained by him in the course of his normal duties as a
Government Servant/ employee of Local Authority/PSU. Corporation/ a Body.
Corporate or establishment set up or owned by the Government or employee of
Nationalized Bank.
4. ELIGIBILITY
FOR REWARD TO GOVERNMENT SERVANTS:-
4.1. General:-
4.2 Ordinarily, Government Servants up to the level of Group ‘A’ officers of the
rank of Deputy Commissioner of Customs & Central Excise and Service Tax, will be
eligible for reward depending on the contribution made by them as a team as well
as in their individual capacity with regard to collection of intelligence,
surveillance, effecting of seizure/detection of duty evasion and post-seizure
investigation.
4.3 Government Servants of the rank of Joint Commissioner/Additional
Commissioner of Customs, Central Excise and Service Tax will also be eligible
for reward subject to a ceiling of Rs.
50,000/- in each case depending upon the
contribution made by them as a team as well as in their individual capacity with
regard to collection of intelligence, surveillance, effecting of
seizure/detection of duty/ service tax evasion investigation and post-seizure
investigation.
4.4 Government Servants working in other
Departments/Agencies such as
Police. BSF and Coast Guard etc. may also be considered for sanction of reward
in respect of cases of seizures of contraband goods affected by these agencies
under the provisions of Customs Act, 1962. However, only such officers of these
Departments/Agencies who hold rank equivalent to the Additional Commissioner of
Customs & Central Excise or lower rank, will be considered eligible for sanction
of rewards in terms of Para 4.2 & 4.3 above.
4.5 The changing pattern of non-compliance places a greater premium on
investigation and therefore this work needs to 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 Rs.
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 considered for
grant of lump-sum payment of reward. The maximum amount of reward to each case
shall be limited to a maximum of Rs.
50,000/- for the officers of the rank upto
Deputy Commissioner and not exceeding Rs.
25,000- for the officers of the rank of
Joint/ Addl. Commissioner.
4.6.1 The revised limits of reward prescribed above in para 4.6 for officers
engaged in audit special audit/ post clearance audit conducted by departmental
officers shall apply to all cases for which MCM (Monitoring Committee Meeting)
is held after the date of issue of these revised guidelines.
4.7 The Authorised Representatives (ARs) upto the level of Group ‘A’ officers of
the rank of Addl. Commissioners of Customs, Central Excise and Service Tax and
other officers/ staff working in the office of Chief Departmental
Representatives (CDRs) CESTAT, may also be considered for sanction of reward not
exceeding Rs.
50,000/- in each case. For this purpose specific proposals may be
sent to the jurisdictional Commissioner/ DRI/ DGCEI by the Chief Departmental
Representative (CDR), CESTAT in cases where the opposite party was represented
by a senior Advocate or eminent lawyer and where the Government would have lost
the case but for the painstaking efforts and effective pleading by the
Authorised Representative. Reward in such cases shall be paid to ARs only after
the case has attained finality i.e. no further appeals are pending in the case.
4.7.1 Reward would not be granted for cases, even high value cases, which are
settled in terms of settled High Court or Supreme Court decisions.
4.7.2 These reward limits and procedure for sanction of reward to the ARs shall
apply to cases where the judgment of the Tribunal/ High Court / the Supreme
Court has been delivered after the date of issue of these revised guidelines/
circular.
5. QUANTUM
AND CEILING OF REWARDS:-
5.1.1 Informers and Government Servants will be eligible for reward upto 20% of
the net sale-proceeds of the contraband goods seized (except items listed in
Para 5.2 below) and/or amount of duty/ Service Tax evaded plus amount of line
and penalty levied/imposed and recovered.
5.1.2 In respect of cases of detection of Drawback
frauds or abuse 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, 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 recommendations to the Ministry, for appropriate
revision and in case of bullion items, proper indexing of prices as and when
warranted.
5.3.1 Reward
to Government Servants, however,
may ordinarily be paid up to 10% of the net sale-proceeds of the contraband
goods seized and/or amount of duty/Service Tax evaded and/or amount of
fraudulently claimed Drawback recovered or duty recovered in cases of misuse of
duty exemption schemes plus amount of fine/penalty levied/imposed and recovered.
Similarly, in respect of Gold, Silver, Opium, Narcotic drugs, psychotropic
substances and synthetic drugs etc., the reward may be limited to half of the
maximum rewards indicated in Annexure
A-1 and Annexure A-2 and Annexure A-3. Reward
in excess of this limit but not exceeding 20% of the value may be considered
only in cases where the Government Servant has exposed himself/herself to a
great personal hazard or displayed exemplary courage, commendable initiative or
resourcefulness of an extraordinary nature or where his/her personal efforts
have been mainly responsible for the detection of case of seizure/evasion of
duty/ service tax.
5.4 Government Servants will be eligible for sanction/payment of total reward
not exceeding Rs.
20 Lakh during their entire career. As regards reward in a
single case, an individual officer should not he sanctioned a total reward
(advance reward and final reward put together) exceeding Rs.
2 Lakh. In cases
where advance reward had not been recommended by the reward sanctioning
committee to any Government Servant(s) due to receipt of overall limit of Rs.
10
lakh and Rs.
15 lakh reward by the said Government Servant(s), as was applicable
during the recommendation by the reward sanctioning committee, the new
guidelines will be applicable while processing for final reward. The structure
for consideration of reward in a single case is tabulated as under:-
Value of
seized goods/ amount of duty evaded etc. |
Ceiling of
reward to Departmental Officers except Joint/ Addl. Commissioner in
each case |
Less than Rs.
50 Crore |
Rs.
1.00 Lakh |
Above Rs.
50 Crore but less than Rs.
100 Crore |
Rs.
1.50 Lakh |
Rs.
100 Crore and above |
Rs.2.00 Lakh |
However, in exceptional cases, reward in excess of this limit i.e. above Rs.
2
Lakh can be sanctioned to an individual officer, by the Board, on the
recommendations of the Reward sanctioning 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 Rs.
1000/- vide reward instructions dated 03.12.1980 shall
now be Rs.
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 seizure of perishable goods
including chemicals, cigarettes etc. under the provisions of the Customs Act,
1962, advance reward may be paid to the Government Servants only after
disposal/pre-trial disposal of the seized perishable goods including chemicals,
cigarettes etc.
6.3 In all other cases, including Customs appraising cases, cases of
town-seizures and Central Excise duty evasion / service tax evasion cases,
normally, no advance/interim reward would be granted. However, in cases where
the parties/persons involved have voluntarily paid the amount of duty evaded
during the course of investigation, admitting their liability, 25% of the
admissible reward may be considered for payment as advance/interim reward to the
informers, after the issue of the show-cause notice (SCN), provided the
authority competent to sanction reward is satisfied that there is reasonable
chance of confiscability/infringement/evasion, as the case may be, being
established in adjudication and sustained in appeal/revisionary proceedings. In
such cases, the Government
Servants will become
eligible for payment of advance/interim reward only after adjudication of
Show-Cause Notice resulting in confirmation of duty.
6.4 In exceptional cases, the Heads of Department may, having regard to the
value of the seizures effected and magnitude of the evasion of duty/infringement
detected and special efforts or ingenuity displayed by the officers concerned,
sanction suitable reward on the spot to be adjusted against the advance/interim
reward that may be sanctioned thereafter.
6.5 Where proceedings in a case are closed without issue of show cause notice or
within 30 days of service of show cause notice after recovery of duty, interest
and /or penalty, as per the provisions of law mandating such closure of
proceedings, reward may be paid to the officers as well as the informers taking
into consideration their respective roles in detection and recoveries made in
the case. Such payment of reward in cases of closure of proceedings shall apply
to cases of normal period of limitation as well as extended period of limitation
provided the proceedings are closed after recovery as per the law, for example,
closure under Section 11A (2) of Central Excise Act, 1944, Sub-section (3) of
Section 73 of Finance Act, 1994 and Section 28(2) and Section 28 (6)(i) of the
Customs Act, 1962 or by an order of the Settlement 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 claimed Drawback recovered plus
penalty/fine recovered for the duty recovered in cases of detection of abuse of
duty exemption schemes. The total reward admissible, i.e.. advance and final
reward put together, should not exceed the ceiling of 20% of the net sale
proceeds (if any) plus amount of additional duty/Service Tax/fine/penalty
recovered or the amount of drawback fraudulently claimed recovered, or the duty
recovered in cases of detection of misuse of duty exemption schemes as the case
may be. This will also be subject to instructions in Para 5.3.1 above as regards
rewards to Government Servants is concerned. The advance / interim reward
sanctioned and disbursed, if any, shall be adjusted against the final reward to
be paid to the Government Servants /informers.
7.2 Time
limit to sanction final reward: In
order to improve disbursal of rewards to Government Servants / informers as an
incentive to improve compliance, it is desirable that immediately after
conclusion of adjudication/appeal/revision proceedings, it should be considered
by the sponsoring authority as to whether the case can be considered and
recommended to the reward committee for grant of reward. All Commissioners and
ADG in-charge should set in place a suitable mechanism to monitor cases becoming
ripe for disbursal of reward and meeting to review cases of reward to Government
Servants and informers which have become ripe for processing shall be held in
every quarter. Meeting of reward committee shall also take place at least once
in a quarter to consider sanction of rewards.
8. DELEGATION OF
POWERS FOR SANCTION/PAYMENT OF REWARD-COMPOSITION OF REWARD COMMITTEE:-
8.1 The monetary limit for sanction of rewards to informers and Government
Servants will be as per Annexure-B.
8.2 In multi-jurisdictional cases, only the Chief
Commissioner/Commissioner/Additional Commissioner/Joint Commissioner having
jurisdiction where the maximum evasion of revenue has taken place shall be the
Member of the Reward Committee. The Additional Commissioner/ Joint Commissioner
being considered for reward should not be a part of the Reward committee.
9. REVIEW OF FINAL
REWARDS SANCTIONED BY THE COMPETENT AUTHORITY
9.1 Final reward sanctioned by the duly constituted reward sanctioning
authority/committee shall not be reviewed or reopened. However, in most
exceptional cases, where DGR1, DGCE1, or the Chief Commissioner, 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 Rs.
20
Lakh of total reward during their career, all rewards sanctioned to the
Government Servants should be entered in their Service Book, before the same are
disbursed. Detailed instructions issued vide Ministry’s letter F.No.
394/46/95-Cus (AS) dated 18th September, 1998, may be scrupulously followed in
this regard.
10.2 In view of the liberalisation of rewards, the Heads of Department may take
special care to ensure that the value of goods fixed at the time of seizure is
realistic and represents the correct value of the goods seized.
10.3 To ensure that reward is not given only to a small group of Government
Servants, it is necessary to ensure that larger numbers of Government Servants
are given an opportunity to work in the anti-smuggling and anti-evasion
assignments. Therefore, there should be periodic rotation of officers and no
officer should be allowed to be posted to airports, DRI, DGCE1 or Headquarters
Preventive of a Commissionerate /Custom House for more than the prescribed
tenure, as per the existing instructions of the Board on the subject.
11. UNDERTAKING BY THE
INFORMER
11.1 At the time when an informer furnishes any information or document (s), an
undertaking should be taken from the informer that he/she is aware that the
extent of the reward depends on the precision of the information furnished by
him/her; that the provisions of Section 177, 182 and 211 of the Indian Penal
Code have been read by and/or explained to him/her; that he/she is aware that if
the information furnished by him/her is found to be false, he/she would be
liable to prosecution; that he/she shall not claim reward as a matter of right:
that he she accepts that the Government is under no obligation to enter into any
correspondence regarding the details of seizures made etc., if any, and that the
payment of reward is an ex-gratia based on best judgment of the authority
competent to grant reward and taking into consideration the facts and
circumstances of each case. It is also clarified to the informer that the
Government is under no obligation to grant/sanction the maximum admissible
reward up to 20% of the net sale proceeds of the seized/confiscated goods, (if
any) and/or the amount of additional duty / penalty / redemption fine recovered
and that the amount of reward to be sanctioned to the informer, will purely
depend on the specificity & accuracy of the information & other dependent
factors, as indicated in Para 3,5,6 and 7 of these guidelines.
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 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 Act, 1944 and
the Chapter V of 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) The officers effecting recovery shall also be eligible for reward in cases
showing recovery as a result of extraordinary efforts of officer subject to
satisfaction of Reward Committee that the recovery had been pending after final
adjudication for at least one year or the unit should be non-functioning for at
least one year etc. It must be ensured that the case has attained finality i.e.
no further appeal is pending in the case or cases are being reported under the
category of persuasive action to Tax Arrear Recovery (TAR). The reward in such
cases can be given up to a maximum of 5% of the amount subject to upper limit of
Rs.
50,000/- in each case as applicable 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 Tablets |
2,000/- (20%
of present illicit price) |
Presence of Methaqualone |
9. |
Amphetamine, its salts and preparations thereof |
20,000/- (10%
of present illicit price) |
100% pure ATS with prorata reduction for reduced purity |
10. |
Methamphetamine, its salts and preparations thereof |
20,000/- (10%
of present illicit price) |
100% pure ATS with prorata reduction for reduced purity |
11. |
Ecstasy or 3,4- Methylene dioxy methamphetamine (MDMA) |
15,0000/1,000 tablets (10%
of present illicit price) |
Presence of MDMA |
N.B: Rewards shall be
reduced prorata if the purity is less than the one prescribed above.
Annexure-A-2
Rates of Reward in
respect of controlled/psychotropic substances, etc. seized under Narcotic
Drugs and Psychotropic Substances (NDPS) Act, 1985
(Para 5.2 of Reward Guidelines)
S. No. |
Commodity
(Controlled/psychotropic substances/synthetic drugs) |
Rate of
maximum reward |
Prescribed
purity |
1. |
Ephedrine, its salts and preparations thereof |
Rs.280/- per kg |
100% |
2. |
Pseudo-ephedrine, its salts and preparations thereof |
Rs.480/- per kg |
100% |
3. |
Acetic Anhydride |
Rs.
10/- per litre |
100% |
4. |
Ketamine, its salts and preparations thereof |
Rs.
700/- per kg. |
100% |
5. |
Anthranillic Acid |
Rs.
45/- per kg |
100% |
6. |
N-acetyl Anthranillic acid |
Rs.
80/- per kg |
100% |
7. |
Diazepam and its preparations |
Rs.
0.53/- per tablet of 5mg |
100% |
8. |
Alprazolam and its preparations |
Rs.
0.20/- per tablet of 5mg |
100% |
9. |
Lorezepam and its preparations |
Rs.
0.296/- per tablet of 5mg |
100% |
10. |
Alprax and its preparations |
Rs.
0.52/- per tablet of 5mg |
100% |
11. |
Buprenorphine / Tidigesic and its preparations |
Rs.
25000/- per kg |
100% |
12. |
Dextropropoxyphene, its salts and preparations thereof |
Rs.
2880/- per kg |
100% |
13. |
Fortwin and its preparations |
Rs.
1.044/- per vial of 30mg |
100% |
N.B: Rewards shall be
reduced prorata if the purity is less than the one prescribed above
Annexure-A-3
Rates of Reward in
respect of seizure of Gold / Silver in contravention of provisions of the
Customs Act, 1962 (Para 5.2 of Reward Guidelines)
Sl. No. |
Commodity |
Rate of
maximum reward |
Prescribed
purity |
1 |
Gold |
Rs.
1500/- per 10 grams |
999% |
2 |
Silver |
Rs.
3000/- per Kilogram |
990% |
N.B: Rewards shall be
reduced prorata if the 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 Rs.
1,500/- per 10 gms. Similarly,
with regard to confiscation of silver, the quantum of reward shall be Rs.
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 Limit |
Reward
Sanctioning Authority |
Upto Rs.
10 lakhs |
Jurisdictional Head of Department i.e. Commissioner of Customs &
Central Excise/ADG DRI/ADG DGCEI |
Above Rs.
10 Lakhs & upto Rs.
25 Lakhs |
A Committee consisting of:- i. Jurisdictional Commissioner of Customs & Central Excise /ADG
DRI/ADG DGCEI,
ii. One of jurisdictional Addl. Comm./Senior most Jt.
Commissioner/Director of the Commissionerate or/DRI/DGCEI and iii. An outside Addl/Jt. Commissioner or Addl/ Jt. Director of
DRI/DGCEI nominated by jurisdictional Commissioner/ADG Note: Addl. Commissioner/ Joint Commissioner of the Commissionerate
or/DRI/DGCEI being considered for reward shall not be member of the
reward committee. |
Above Rs.
25 Lakhs & upto Rs.
50 Lakhs |
A Committee consisting of i. Jurisdictional CC/DGRI/DGCEI, ii. Jurisdictional Commissioner of Customs & C.Ex./ADG DRI/ADG DGCEI
and iii. Commissioner (Logistics) or any other Commissioner rank officer
nominated by CC/DGRI/DGCEI |
Above Rs.
50 Lakhs |
Apex Reward Committee comprising of i. DGRI. ii. DGCEI and iii. Jurisdictional Chief Commissioner |
2. Reward
for Government Servants |
Monetary
Limit |
Reward
Sanctioning Authority |
Upto Rs.
15.000 |
Jurisdictional Addl Commissioner/Jt. Commissioner/Addl. /Jt.
Director of Customs & Central Ex./DRI/DGECI where the reward
proposed is upto the rank of Deputy Commissioner of Customs, Central
Excise & Service Tax. |
Above Rs.
15,000 & upto Rs.
30,000 |
Jurisdictional Head of Department i.e. Commissioner of Customs. & C
Ex. ADG DRI/ADG DGCEI |
Above Rs.
30,000 & upto Rs.
1 Lakh |
A Committee consisting of i. Jurisdictional Commissioner of Cus. & C.Ex./ADG DRI/ADG DGCEI. ii. One of jurisdictional Addl. Comm./Senior most Jt.
Commissioner/Director of the Commissionerate or/DRI/DGCEI and iii. An outside Addl/Jt. Commissioner or Addl/Jt. Director of DRI/
DGCEI nominated by jurisdictional Commissioner/ADG |
Above Rs.
1 Lakh & upto Rs.
2 lakhs |
A Committee consisting of i. Jurisdictional CC/DGRI/DGCEI. ii. Jurisdictional Commissioner of Customs & C.Ex./ADG DRI/ADG DGCEI
and iii. Commissioner(Logistics) or any other Commissioner rank officer
nominated by CC/DGRI/DGCEI |
Note:-
(i) Advance reward to informer as well as Government Servants may be decided by
the reward sanctioning authority upto the respective monetary limit even if the
total entitlement of reward exceeds the said monetary limit. In such cases, the
final reward to the informer and Government Servants shall be decided by the
appropriate reward sanctioning authority based on entitlement of reward.
(ii) In case, the jurisdictional Additional Commissioner/Joint
Commissioner/Additional Director/Joint Director is considered for reward upto Rs.
30.000/-, the jurisdictional head of Department i.e. Commissioner of Customs and
Central Excise. ADG DRI, ADG DGCEI will be the reward sanctioning authority even
when the reward to the other officer is upto Rs.
15,000/-.
(iii) In case, the Additional Commissioner/Joint Commissioner/Additional
Director/Joint Director is considered for reward above Rs.
30,000/- and upto Rs.
50,000/-, the reward sanctioning authority shall be a committee consisting of :-
(a) Jurisdictional CC/ DGRI/ DGCEI.
(b) Jurisdictional Commissioner of Customs & C.Ex./ ADG DRI/ ADG DGCEI and
(c) Commissioner (Logistics) or any other Commissioner rank officer nominated by
CC/ DGRI/ DGCEI.
(iv) In cases such as one officer holding dual/ multiple charges of two or more
members of the Reward Committee proposed to be set up to sanction rewards, the
composition of such committees can be modified with approval of the next
Supervisory officer to take care of such exigencies.
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