Maharashtra Goods and Service Tax, Act, 2017
S. 73 : Demands and Recovery-Tax evasion- Reward for providing information related to tax evasions-Reward determined but not paid by the government-Reward scheme should be operated fairly and avoid frivolous objections-Government directed to pay the reward with interest in case of delay-Circular GR No.STA-2004/CR-103 Taxation-2 dt. 05-06-2007. [S. 74]
The petitioner, a 64-year-old Mumbai resident, sought a reward for providing information regarding tax evasion since 1992, which aided in recoveries from Public Sector Oil Companies and Fisherman Co-operative Societies under a circular/resolution dated 01 January 1976. Despite court orders, the government authorities delayed payment by citing appeals, irrevocable revenue needs, and a disproven Form-A issue. The Bombay High Court confirmed a Rs. 12.93 crore recovery under the 2019 Amnesty Scheme due to the petitioner’s information, setting a reward of Rs. 19,44,802. The court emphasized that the government must operate its reward scheme fairly and transparently, ensuring informers who take risks are not made to struggle for rightful payments, and that unreasonable delays or frivolous objections to avoid legitimate payments must cease. The court ordered payment of the determined reward within six weeks from June 24, 2025, with an 8% per annum interest for delays, to be recovered from the responsible officers. It also directed the Sales Tax Commissioner and Finance Secretary to finalise the full reward amount within six months and disburse it within two months thereafter, maintaining transparency. The petitioner may accept the payment under protest and pursue additional claims legally. (W.P No. 2283 of 2013 dt.24-06-2025)
Darshan Singh Parmar v. UOI (Bom)( HC) www.itatonline.org
[Coram : Justice Shri. M. S. Sonak & Justice Shri Jitendra Jain]