Updated Guidelines for Virtual Personal Hearings in India’s Tax Acts

Introduction

On November 5, 2024, the Ministry of Finance, Government of India, announced updated guidelines for conducting personal hearings linked to various tax acts, including the CGST and Customs Acts. These revisions replace earlier instructions on the format of personal hearings for adjudicating and appellate authorities.

Revision of Personal Hearing Guidelines

The previous amendment dated July 28, 2022, permitted personal hearings to proceed in virtual mode at the assessee's request, with physical hearings available for those opting out of virtual formats. However, this amendment has been rescinded. The original directive from August 21, 2020, is once again in effect, stipulating that all personal hearings must be held via video conferencing. Physical hearings are now only allowed if specifically requested by the party involved, along with a written justification for such a request.

Purpose of the Directive

The primary goal of this directive is to standardize procedures for personal hearings, fostering consistency across various departments.

Official Circular Details

The following communication outlines the instructions issued:

INSTRUCTION

To:

1. All Principal Chief Commissioners/Chief Commissioners (Customs, CGST & Central Excise)
2. All Principal Commissioners/Commissioners (Customs, CGST & Central Excise)
3. ADGs/ADGs DRI (Adjn)/DGGI (Adjn.)
4. All Commissioners (Appeals) (Customs, CGST & Central Excise)

Subject: Guidelines for Conduct of Personal Hearings under CGST Act, 2017, IGST Act, 2017, Customs Act, 1962, Central Excise Act, 1944, and Chapter V of Finance Act, 1994.

Reference to Previous Instructions

Attention is drawn to the Board’s instruction dated August 21, 2020. The guidelines established in this instruction were modified via the amendment on July 28, 2022. This amendment prescribed that:

“The conduct of personal hearing by adjudicating/appellate authority shall be done in the virtual mode only at the request of the assessee. The virtual mode of hearing shall not be mandatory. For the assesses not opting for the virtual mode, the personal hearing shall be taken in physical mode.”

Current Evaluation and Changes

Following a review prompted by representations received thereafter, the amendment from July 28, 2022, has been formally withdrawn. As a result, the original guideline from August 21, 2020, is reinstated. It now mandates all quasi-judicial/appellate authorities to conduct personal hearings via Video Conferencing (VC). Exceptions permitting physical hearings can only be made upon the party's explicit request, with written documentation of the reasons provided.

Conclusion

These updated guidelines aim to streamline the process of personal hearings across departments, ensuring that procedures remain standardized and efficient. This directive has been issued with the approval of the competent authority.