GENERAL CIRCULAR NO. 39 / 2005 Dated: 26.10.2005

Sub:-Grant of Reward to informers in cases of recovery from

Tax defaulters - Regarding.

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Copy of Board’s letter F.No. 13011 / 3 / 2004 – CUS(AS) dated 12.08.2005, on the above subject is communicated for information and necessary action.

[Issued from file C.No.IV/16/04/2005-Cx.Pol (Vol.II)]

Sd/-

(P.V.N.SURESH BABU)

JOINT COMMISSIONER

//ATTESTED//

(R.RENUGAN)

SUPERINTENDENT (TECH)

To

As per Mailing List

(Department only)

F.No.13011/3/2004-CUS(AS)

Government of India

Ministry of Finance

Department of Revenue

C.B.E.C.

August 12^th, 2005

All Chief Commissioners of Customs / Central Excise

Director General, DRI/DGCEI/Vigilance/Inspection/Audit/

NACEN/Service Tax

Commissioner, Directorate of Logistics

All Commissioners of Customs

All Commissioners of Central Excise

All Commissioners of Customs & Central Excise

All Directorates under CBEC

Sir / Madam,

Subject:- Grant of Reward to informers in cases of recovery from tax

defaulters – Regarding.

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I am directed to refer to Ministry’s F.No. R-13011 / 6 / 2001-Cus (AS) dated the 20^th June, 2001 communicating the guidelines in respect of grant of reward to informers and Government servants and to state that it has been decided to extend the reward scheme to cases of recovery from tax defaulters. The provisions in this regard are as follows:

(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 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.

Kindly acknowledge the receipt of this letter.

Yours faithfully,

Sd/-

Priya V,K,Singh

Deputy Secretary

Copy to

F.No. R-13011/6/2001 – Cus (AS)
Guard File Sd/-

Priya V,K,Singh

Deputy Secretary