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. The following are a few guidelines for the people who like to help detection of Customs Duty evasion/frauds:
Under the existing Reward Scheme, Government of India grants handsome rewards to informers who provide specific information leading to seizure of goods, currency, bullion or leads to detection of duty evasion including wrong declaration of quantity, description, value etc. 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 leading to seizure/detention. 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. An information should contain details of the evasion known, such as name & address of the firm, method adopted for the evasion, the persons responsible and all other relevant details.
The maximum amount of reward to the informers can be as high as 20% of the value of confiscated goods and penalty realised. The maximum reward in respect of gold is Rs.50,000/- per Kg., for silver it is Rs. 1,000/- per Kg., for Opium it is Rs. 220/- per Kg., for Heroin it is Rs. 20,000/- per Kg., for Cocaine it is Rs. 40,000/- per Kg. and for Hashish it is Rs. 400/- per Kg. If the information leads to detection of duty evasion, maximum reward of 20% of the duty evaded plus 20% of the fine/penalty realised can be given as reward to the informers.
