Delhi HC Rules Informers Cannot Claim GST Evasion Rewards as Matter of Right

The Delhi High Court held that granting a reward to an informer of GST evasion is a discretionary act and cannot be claimed as a matter of right.

The petitioner had sought a reward under the Central Excise and Service Tax Reward Scheme, 2015, for providing information on tax evasion. The Court observed that the scheme expressly treats such rewards as ex gratia, dependent on the authority’s satisfaction with the accuracy and usefulness of the information.

Accordingly, the petition was dismissed, holding that an informer has no enforceable right to demand the reward.

[S. C. Gupta v Union of India & Ors.]