In an important update, Central Board of Indirect Taxes and Customs (‘CBIC’) has made virtual mode of hearing mandatory. The judicial cell of CBIC vide. Instruction F. No. 390/Misc/2019-JC dated November 5, 2024, has instructed that all hearings under current Indirect Tax laws, whether current or erstwhile, shall be conducted in virtual mode.
The hearings at all levels of adjudication
will be covered. Apparently, following hearings will be conducted in virtual
mode:
1.
Post issuance
of SCN
2.
Rectification
of SCN/Order
3.
Appellate
Authority under Section 107
4.
Revisional
Authority under Section 108
5.
Other
quasi-judicial proceedings
In vehicle detention matter, practically,
no hearings are being done before passing an Order. However, Section 129(4)
mandates a hearing before passing a penalty order. Post this Instruction, it
will be interesting to see how the Mobile Squad officers will conduct virtual
hearings.
Exception to virtual hearing mode
The Instruction also provides that
physical hearings can be done in exceptional cases. In case of grant of
physical hearing, the officer shall record the reasons in writing.
| Remarks
Pros of virtual hearing
·
Saving lot
of time, efforts and cost of taxpayers as well as consultants/counsels
·
Recording of
hearing notes properly and communication over mails. This will avoid instances
where taxpayers/consultants were not given physical hearing notes once hearing
is done.
·
To some
extent, getting rid of unethical practices or undesirable altercation between
taxpayers and officers
Cons of virtual hearing
·
Lack of
physical interaction may dilute the quality of oral submission a taxpayer wants
to make.
·
Possibility
of Lack of interest of officer to hear taxpayer for long in virtual mode.
·
In some
cases, pertaining to numbers and not law, physical interaction is better than
virtual mode.
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