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CISF, BSF, Coast Guards to be eligible for indirect tax informant reward scheme

Press Trust of India  |  New Delhi 

Officers in agencies like police, BSF, CISF and can give information to the indirect authorities about evasion and get rewarded.

The and Customs (CBIC) has amended the reward guidelines to include officers of other agencies within the scope of the scheme.

"Servants working in other Departments/Agencies such as Police, BSF, Guard,CISF, State CST etc who play a role in Customs, CST, Central Excise, Service and NDPS cases booked / investigated by the formations and agencies under CBIC may also be considered for sanction of reward," the CBIC said in a circular.

However, only such officers of these department/agencies who hold rank equivalent to the of Customs & Central or lower rank, will be considered eligible for sanction of rewards, it added.

So far, as per the guidelines under the Customs Act, Central Act, Narcotic Drugs & Psychotropic Substances (NDPS) Act, and Service provisions and Drawback frauds or abuses of Export Promotion Schemes, rewards are granted to the informers and government servants in respect of cases of made and/or infringements/evasion of duty / service tax etc.

Informers and government servants were eligible for reward up to 20 per cent of the net sale-proceeds of the contraband goods seized and/or amount of duty/ service tax evaded plus amount of penalty levied and recovered.

In respect of cases of detection of Drawback frauds or abuse of duty exemption schemes under various Export Promotion Schemes, the informers and government servants were eligible for reward up to 20 per cent of recovery of drawback claimed fraudulently and/or recovery of duties evaded.

Final rewards, both to government servants as well as informers, are sanctioned only after conclusion of adjudication/appeal/revision proceedings, as well as closure of proceedings.

"Consequent to the introduction of GST, a need was felt to include recovery in cases under CGST and IGST Acts under the Reward Guidelines to ensure their parity with cases booked under the Customs Act, NDPS Act, Service Tax and Central References were also received in the Board to treat officers of other Government agencies, who play a role in the detection of cases, at par with CBIC officers, irrespective of the fact whether has been effected by these agencies or by officials of CBIC," the circular said.

The informant reward scheme will, henceforth, also include recovery under the Central GST (CGST) and Integrated GST (IGST) acts. This would help check evasion of by unscrupulous traders and businesses.

"The amended reward guidelines will also be applicable to cases which have not been processed till date," the CBIC said.

These guidelines will be applicable 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.

Currently, an informer to the can earn up to Rs 5 crore for providing information to income tax authorities regarding black money stashed abroad. Under the benami transaction prohibition act, the informants can earn up to Rs 1 crore by providing information regarding benami transaction or property.

In the run up to the roll out of the (GST) on July 1, 2017, the government had renamed the of (DGCEI) as DGGSTI for investigating cases of evasion in the new regime. The of (DGGSTI) has already made several arrests for evasion of the and an informant reward scheme is expected to help the directorate to keep an eye on such activities.

AMRG Associates Partner said: "Informant scheme has been extended to recovery of CGST and IGST which would ensure full circle inclusion of all central for the purposes of rewards to informants, including officers of other government agencies playing a role in the detection of cases, with CBIC officers".

EY Tax Partner said: "This scheme would aid in unearthing black money and checking by businesses. Where successful, this could help boost tax collections by the Government as well".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 08 2018. 21:25 IST