GOVERNMENT OF INDIA
MINISTRY OF FINANCE AND COMPANY AFFAIRS
DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, CHENNAI - I
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)]
As per Mailing List
Government of India
Ministry of Finance
Department of Revenue
August 12th, 2005
All Chief Commissioners of Customs / Central Excise
Director General, DRI/DGCEI/Vigilance/Inspection/Audit/
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 20th 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.