S. C. GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner claims that he furnished essential information regarding the excessive sale of non-duty-paid goods by a company, leading to the clandestine removal of goods without duty payment. This critical information on substantial tax evasion directly facilitated the recovery of unpaid dues by the Respondents. Thus, asserting his entitlement to the full reward specified under the relevant guidelines, he seeks a writ of mandamus compelling the Respondents to disburse the claimed reward in its entirety.

(2.) Indeed, based on the information provided, a show cause notice was issued to the company and its officials, raising a demand of INR 23.89 crores. In response, the defaulting company availed the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and settled the matter with the Respondents by paying 50% of the duty demand, amounting to INR 11.94 crores. The Petitioner's entitlement to a reward based on the recovery of unpaid duty arising from his disclosure was acknowledged; however, the Respondents disbursed only 2 percent of the claimed reward amount-i.e., INR 25 lakhs.

(3.) The Petitioner contends that the reward amount disbursed is grossly inadequate and contrary to the terms outlined in the guidelines. He asserts that, since the duty evasion by the Company was uncovered solely based on the information he provided, he has a legitimate expectation of receiving the full reward of 20 percent as specified. To support his claim, he places reliance on the revised Guidelines for grant of Reward to Informers and Government Servants 'Guidelines", specifically invoking Clause 5.1.1., which reads as under: