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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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