2015 (11) TMI 593 - HC - Customs

Reward for informing evasion of duty - Partial reward given - Held that - revenue stated that the quantum of the final reward and due to the Petitioner will be decided by the Reward Sanctioning Committee within this period of three months. - In the light of statements made on affidavit and reiterated before us by respondent, all of which are accepted as undertakings to this Court, nothing survives in the Writ Petition - Petition disposed of.

Summary

Issues involved:
Claim for final reward with interest at 18% for assisting in unearthing evasion of duty.

Analysis:
The petitioner, a clearing agent at Mumbai Port, assisted the customs department in uncovering an evasion of duty by importers smuggling goods. The petitioner's specific information led to the seizure of goods and subsequent legal action. Despite receiving an advance reward of Rs. 14,00,000, the final reward remained unpaid, prompting the petitioner to file a Writ Petition seeking direction for its issuance.

In response to the court's order, an affidavit was filed by the Assistant Commissioner of Customs, stating that Rs. 2,35,74,974 was recovered as sale proceeds of contraband goods, with a penalty of Rs. 67,50,000 imposed, of which Rs. 20,00,000 had been recovered. The remaining balance was to be recovered within three months, as assured by the Respondent's counsel.

The Respondent's counsel assured the court that the final reward due to the petitioner would be determined by the Reward Sanctioning Committee within the specified three-month period. Based on these assurances and undertakings, the court found no further need for the Writ Petition, which was consequently disposed of without any costs.

This judgment highlights the court's reliance on the assurances provided by the Respondent's counsel regarding the recovery of the outstanding amount and the determination of the final reward by the committee within the stipulated timeframe. The case underscores the importance of timely and fair compensation for individuals who assist in exposing unlawful activities, emphasizing the need for transparency and adherence to commitments made to such informers.