TMI BlogGrant of reward to informers and Government Servants - Review of Policy, Procedure and issue of revised Guidelines - regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Laid 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... 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I. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer 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 ₹ 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 Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1.00 Lakh Above ₹ 50 Crore but less than ₹ 100 Crore ₹ 1.50 Lakh ₹ 100 Crore and above Rs.2.00 Lakh However, in exceptional cases, reward in excess of this limit i.e. above ₹ 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 ₹ 1000/- vide reward instructions dated 03.12.1980 shall now be ₹ 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 cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum 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 recommen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 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-furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and preparations thereof Rs.280/- per kg 100% 2. Pseudo-ephedrine, its salts and preparations thereof Rs.480/- per kg 100% 3. Acetic Anhydride ₹ 10/- per litre 100% 4. Ketamine, its salts and preparations thereof ₹ 700/- per kg. 100% 5. Anthranillic Acid ₹ 45/- per kg 100% 6. N-acetyl Anthranillic acid ₹ 80/- per kg 100% 7. Diazepam and its preparations ₹ 0.53/- per tablet of 5mg 100% 8. Alprazolam and its preparations ₹ 0.20/- per tablet of 5mg 100% 9. Lorezepam and its preparations ₹ 0.296/- per tablet of 5mg 100% 10. Alprax and its prep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty 1. Reward To informers Monetary Limit Reward Sanctioning Authority Upto ₹ 10 lakhs Jurisdictional Head of Department i.e. Commissioner of Customs Central Excise/ADG DRI/ADG DGCEI Above ₹ 10 Lakhs upto ₹ 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 ₹ 25 Lakhs upto ₹ 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 off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner/Additional Director/Joint Director is considered for reward above ₹ 30,000/- and upto ₹ 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. ******************** Notes : - 1. Substituted Vide M.F. (D.R.) Circular No. 29/2016-Cus., dated 23-6-2016, before it was read as 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 equ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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