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then the remuneration paid is subject to GST. In such cases, the ‘reverse-charge’
mechanism will apply and it is the company (recipient of the services) who will
pay the GST.
AAR rulings have a persuasive role in similar cases. Thus, this ruling
will be useful to India Inc. to substantiate that GST does not arise in case of re-
muneration paid to fulltime Directors, who essentially are key Managerial
Personnel of the company.
[Source : The Times of India, New Delhi, dated 11-5-2020]

DGS has to take a call on waiving detention charges

The Central Board of Indirect Taxes and Customs (C.B.I. & C.) has issued
guidelines for conduct of personal hearings through video-conferencing by vari-
ous 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 re-
spondent, communication of the date and time of personal hearing to the parties
concerned, filing authorisation letter along with identity proof and contact de-
tails, marinating appropriate dress code and decorum, and video-conferencing
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 person-
al hearing and sending the same to the party for his confirmation within three
working days, seeking modifications of the recorded statement through e-mail,
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 over-
all 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 taxpayers during
investigations.
Hopefully, other Government Departments will follow the lead given by
C.B.I. & C. and make such video-conferencing the new normal in respect of all
proceedings under other laws such as Income Tax, Goods and Services Tax, etc.
The C.B.I. & C. has also instructed field formations to make special ef-
forts to dispose of all pending refund and drawback claims through a “special
refund and drawback disposal drive”. The C.B.I. & C. has directed that all defi-
ciency memos may be reviewed and refund/drawback may be considered on
merit and for facilitation of exporters, all communication should be done over e-
mail, wherever e-mail ID of the applicant is available.
The Director General of Foreign Trade (DGFT) has issued a circular, clar-
ifying that in respect of advance authorisations where no revalidation or exten-

EXCISE LAW TIMES  15th May 2020  57