REWARDS TO INFORMERS |
Government functions with the help of the taxes collected from the
citizens. The tax levy is a system, which is generally not to the liking of the
public. Hence, the tax evasion is the major field, were Government revenue is
lost. To enhance the detection of evasion Government has framed the system of
rewards to the people who help in the detection of the tax evasion. In Central
Excise also reward is given to the people who give concrete information about tax evaders.
The following are a few guidelines for the people who like to help detection of Central
Excise Duty evasion:
1) What is an information?
An information is any useful message received from the public or any
person for that matter revealing fraudulent evasion of duty. It is the message based on which the department
officials conduct further enquiry and investigation.
2) Who can give information?
Any person who is aware of the illegal activities of the manufacturing
units or any Central Excise assessee can give an information.
3) Who is an informer?
Any person
other than the Officers of the Central Excise who has the requisite information
relating to evasion of duty is an informer.
4) Whom should an informer contact?
An informer with
an information and can contact Central Excise department and deliver the information to
any Officer of the rank of Inspector and above.
5) How to give an information?
An information
has to be given in writing addressed to the Head of the department, after affixing the
signature of the person giving the information along with the left-hand thumb impression.
6) What should an information contain?
An information
should contain details of the evasion known, such as name & address of the unit,
method adopted for the evasion, the persons responsible and all other relevant details
connected with the evasion.
7) What are the common methods of evasion
adopted with regard to Central Excise?
a) Misdeclaration /
under-valuation of the product.
Manufacture of the products without the
informing the Department. Selling the same at a higher price after showing a lesser value
to the department.
b) Suppression
of production
Producing the goods without properly
accounting the same in the records.
c) Clandestine
removal.
Removing the
goods without accounting the same and with out payment of duty. Even a transporter
who stores such goods is liable for action.
8) How
the department receives an information?
The department
acknowledges the information. The name and
address of the informer is kept confidential.
9) What benefit does an informer get?
An informer is given
the reward if the information given is correct and the duty payable by the assessee is
recovered.
10) What is the eligible reward amount and
how it is disposed?
The eligible reward amount is up to 20% of
the duty evasion detected and realised. The amount is disbursed in the following
manner:
a) Upto 25% of eligible reward amount after
issue of Show Cause Notice.
b) Another 25% of eligible reward amount
after adjudication of the case.
c) Balance of 50% of the
eligible reward amount after conclusion of the appeal proceedings.
11) When are the above rewards
sanctioned?
The first two
categories of rewards are advance rewards sanctioned after issue of Show Cause Notice and
Adjudication of the case respectively, provided the competent authority to sanction reward
is satisfied that there is reasonable chance of sustenance of the case in appellate
forums. The third category is final reward it is sanctioned after conclusion of the Appeal
proceedings. The reward is disbursed after
confirming the identity of the informer, in the presence of two witnesses.
12) What is the punishment for false
information?
If any false information is given to the
department, action can be initiated against the informer under Section 182 of Indian Penal
Code.
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