DGS has to take a call on waiving detention charges

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for conduct of personal hearings through videoconferencing by various authorities, in respect of any proceedings under the Customs, Central Excise and Service Tax laws.

The guidelines include consent of the parties, either as appellant or respondent, communication of the date and time of personal hearing to the parties concerned, filing authorisation letter along with identity proof and contact details, marinating appropriate dress code and decorum, and videoconferencing through available applications or other secured computer network.
 

The guidelines also mandate the participation of the party, along with the advocate or authorised representative, preparation of the record of personal hearing and sending the same to the party for his confirmation within three working days, seeking modifications of the recorded statement through email, submission of any additional documents or facts or pleas and participation of any official of the department in the proceedings.

The new rules will enable expeditious completion of the adjudication and appeal proceedings for quick delivery of justice in compliance with the overall directions given by the Supreme Court under Article 142 of the Constitution of India. It would also facilitate importers, exporters, passengers, advocates, tax practitioners, and authorised representatives to maintain social distancing while performing their work at ease from a place of their choice. Apparently, these guidelines will continue far beyond the lockdown period and cover even areas such as recording statements, instead of summoning the tax payers during investigations.

Hopefully, other government departments will follow the lead given by CBIC and make such videoconferencing the new normal in respect of all proceedings under other laws such as income tax, Goods and Services Tax etc.

The CBIC has also instructed field formations to make special efforts to dispose of all pending refund and drawback claims through a “special refund and drawback disposal drive”. The CBIC has directed that all deficiency memos may be reviewed and refund/drawback may be considered on merit and for facilitation of exporters, all communication should be done over email, wherever email id of the applicant is available.

The Director General of Foreign Trade (DGFT) has issued a circular, clarifying that in respect of advance authorisations where no revalidation or extension in export obligation period has been granted, automatic revalidation and extension will be granted. In other cases, where revalidation or extension has already been taken, the exporter must apply for further extension or revalidation.

Meanwhile, many shipping companies are refusing to follow the Director General of Shipping (DGS) orders to waive the container detention charges. Their contention is that the DGS has no jurisdiction to issue instructions in contractual matters between the parties to the contract of carriage. They refuse to release the containers unless the importers pay the detention charges. The importers are left with no option but to pay, so that they can get their activities going. Many operators of the Container Freight Stations have also refused to waive demurrage on the same grounds that DGS has no right to tell them to do so. The DGS should now find a way to enforce its order effectively or withdraw it.

email: tncrajagopalan@gmail.com