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2002 PTD 1488

SHABIR AHMAD CHISHTI vs SECRETARY, REVENUE DIVISION, ISLAMABAD

Citation2002 PTD 1488
CourtFederal Tax Ombudsman
Case No.Complaint No.1237 of 2001
Date2002-01-03
Judge(s)Saleem Akhtar
ResultOrder accordingly

DECISION /FINDINGS The complainant has alleged maladministration on the part of Customs Department by denying him the reward in accordance with the reward policy as communicated to General Public through advertisement published in daily "Pakistan". The complainant is an informer: Intelligence and Investigation Department seized a non-duty paid Toyota Land Cruiser on his information. He claimed a reward of Rs..1,30,500. The Department had paid Rs.39,160 to the complainant as reward.

2. The Additional Director of Intelligence and Investigation (Customs and Excise) in his written reply to complaint submitted that full share of reward had already been paid to the complainant in compliance of an earlier, decision of Wafaqi Mohtasib for the same relief.

3. Heard both the parties. The reward rules have been notified vide S.R.O. 603(1)/73, dated 24-4-1973. The complainant had given information on 17-9-1998. Rule 2 of Notification No.S.R.O. 603(1)/73, as amended on 5-8-1998, describes scale of reward as under:- "(2) The following shall be the scale of Reward: Value of the goods seized Amount of reward Rs.20,000 or less 50% of the value of the goods More than Rs. 20,000 but not more then Rs.

5,00,000Rs. 10,000 + 25% of the value of the goods in exceed of Rs.20,000 Over Rs. 500,000. Rs. 1,30,000 + 10% of the value of the good, in excess of Rs.

5,00,000 Provided.That the scale of reward in the case of smuggled vehicle shall be 25% of the CIF value of the vehicle.

4. The CIF value of the vehicle seized on the basis of information given by the complainant on 17-9-1998 was determined at Rs.1,044,447. The admissible reward @ 25% of CIF value, therefore, was Rs.261,112.

5. Rule 3 of the Rules, 1973, as amended on 1-10-1998, that provides for the distribution of admissible reward among the entitled persons, is as under:

(3) Out of the amount of reward admissible according to paragraph. 2, the following shall be the distribution.

(i) Informer. 15 % of the admissible reward.

(ii)Staff and officers of the Customs Department or other anti-smuggling agencies involved in seizure operations.51.7% of the admissible reward.

(iii)Common pool for the welfare of the staff and officers of the unit which carried out the seizure.33.3% of the admissible reward.

6. Prior to 1-10-1998 clause 3 was as under: "3. Out of the amount of reward admissible according to paragraph 2, the following shall be the distribution.

(i) Informer. 1/3of the admissible reward.

(ii)Staff and officers of the Customs Department or other anti-smuggling agencies involved in seizure operations.1/3of the admissible reward.

(iii)Common pool for the welfare of the staff and officers of the unit which carried out the seizure. 1/3of the admissible reward.

Notwithstanding anything contained in paragraph 3 of the reward to a serving officer shall not ordinarily exceed 2 years' salary in any one case. Half of the admissible reward shall be paid immediately after seizure to the informer only.

7. According to the complainant information was given by him on 17-9-1998 in response to an advertisement issued by C.B.R. And published in several newspapers on August 7, 1998. It was clearly announced through the advertisement that the C.B.R. Has amended the Reward Rules to provide that immediately after the seizure of vehicle 25% of its CIF value shall be distributed equally between the informer and the seizing staff.

8. The complainant,, therefore, claims that he is entitled to a reward amounting to Rs.'1,30,500 while it has been submitted on behalf of the C.B.R. That the share of the informer that was 1/3rd of the amount for reward up to 30-9-1998 was reduced to 15% of the amount of reward through amendment in rule 3 as reproduced in foregoing para. 5.

9. Mr. Zafar Akhtar, Secretary (FTO-II), C.B.R. Has submitted vide C. No.1 (1237) (FTO-II) 2001, dated 6-10-2001 that the publication of aforementioned advertisement was verbally authorized by the then Chairman, C.B.R. Mr. Moinuddin Khan and released by Mr. Muhammad Asghar Chaudhary, Public Relations Officer, C.B.R. Vide Release Order C. No.2(i) CUS- PRO/98, dated August 4, 1998.

10. It transpires on perusal of the Reward Rules amended up to 20-3-1999 that the advertised amendment providing for distribution of the amount of admissible reward equally between the informer and the seizure staff was never made by C.B.R.

11. Prima facie it is maladministration of the worst order. It isiB recommended that Secretary, Revenue Division orders an enquiry to determine:

(a) If the Release Order C.No.2(i) CUS-PRO/98, dated August 4, 1998 under the signature of Mr. Muhammad Asghar Chaudhry, Public Relations Officer, C.B.R. Was duly authorized?

(b) The name (s) and designation (s) of Officer (s) who approved the advertisement as well as of those who authorized its release for publication.

(c) Facts and circumstances that prevented the advertised amendment in the Reward Rules and instead, an amendment reducing the share of informer from 1/3rd to 15% of admissible reward was made on 11-10-1998.

(d) Findings to be reported under the signatures of the Secretary, Revenue Division within 7 days of the receipt of this recommendation.

12. Decision and recommendations on the instant complaint shall be made on receipt of report from the Secretary, Revenue Division.

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