Informer Policy

INFORM US

While most manufacturers as well as importers/ exporters pay Customs and Central Excise duties correctly, there are quite a few persons/ organizations who indulge in evasion of Customs and Central Excise duties. The department is well aware of the modus operandi in this regard and many of such hard core smugglers/ white-collar criminals have infact been detained under COFEPOSA (Conservation of Foreign Exchange & Prevention of Smuggling Activities Act).

Government of India has a system of granting rewards to Government Servants and informers who provide specific information leading to seizure of goods, currency, bullion or leading to detection of duty evasion including wrong declaration of quantity, description, value etc. Reward is also granted to informers for providing specific information leading to seizure of Narcotic Drugs as well as Arms & Ammunitions and Explosives and Foreign Exchange. The maximum amount of reward to informers can be as high as 20% of the value of the confiscated goods and penalty realized. The maximum reward in case of Gold is Rs.50,000/- per Kg., for Silver Rs.1,000/- per Kg., for Opium Rs.220/- per Kg., for Heroin it is Rs.20,000/- per Kg., for Cocaine Rs.40,000/- per Kg. and for Hashish it is Rs.400/- per Kg.

YOUR NAME AND IDENTITY WILL BE KEPT ABSOLUTELY CONFIDENTIAL. NOT ONLY CAN THE INFORMER GET HANDSOME REWARD, THIS MONEY IS ALSO EXEMPTED FROM INCOME TAX.

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 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 without payment of duty. Even a transporter who stores such goods is liable for action. Vehicles with the goods, removed without payment of Central Excise duty is also 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) When are the 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.

11) 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.

If you have any information please contact the following officer :