Chapter
XX: Transitional provisions

139

  
Certificate of registration on provisional basis is issued subject to conditions to a
person registered under
existing law &
having a valid
PAN unless he has filed an application that he is not liable to
register and the same is accepted.

  
The final
certificate of registration shall be granted in prescribed form & manner.

140

Transitional arrangements for ITC:

140(1): A person can avail CENVAT credit c/f in the return under the existing law relating
to the period before the appointed day subject to following conditions:

  
Such
credit is
admissible
as ITC
under this act

  
Credit
does not relate to goods cleared under notified
exemption notifications

  
All returns for the last 6 months under the
existing law are
filed before the appointed date

140(2):
Persons can avail unavailed CENVAT
credit of capital goods not c/f in the return under the existing law relating to the period
before the appointed day, if such credit is
admissible as ITC under this act.

140(8):
A person having
centralized
registration
under existing law can
avail CENVAT
credit
c/f
in the return under the
existing law relating to the period before the appointed day, subject to
following conditions:

  
Such
credit is
admissible
as ITC
under this act

  
All returns for the last 3 months under the existing
law are filed before the appointed date

140(3):
A person can take
credit
of eligible duties in respect of inputs
held
in
stock
& inputs contained in
semi-finished or finished goods held in stock on appointed day, if he:

   
Is not liable to be registered under the existing law

   
Manufactures
or provides
exempted
supply

   
Provides
works contract service & was availing benefit of notification No. 26/2012
of ST

   
Is a first
or second stage
dealer or a registered importer or
a
depot
of a manufacturer

  
Conditions:

  
The inputs
or goods are
used
for
making taxable supplies under this Act

  
The
registered person is
eligible for ITC on such
inputs under this Act

  
Invoices evidencing payment of
duty under existing law is
in possession

  
Such
invoices were
issued
not earlier than 12 months
before
the appointed day

  
The
supplier of services is
not eligible for any abatement under this Act

140(6):
A person paying
tax
at a fixed rate or composition levy

can take
credit of eligible duties in respect of inputs held in stock & inputs contained in semi-finished or finished goods
held in stock on appointed day, subject to conditions:

  
The inputs
or goods are used for making taxable supplies under this Act

  
The registered
person is eligible for ITC on such inputs under this Act

  
Invoices
evidencing payment of duty under existing law is in possession

  
Such
invoices were issued not earlier than 12 months before the appointed day

140(4):
Credit can be taken u/s 140(1) & (3) for supply taxable under
this act & previously assessable under the
Central Excise Act, 1944 or Chapter V of the Finance Act, 1994.

140(5):
Credit of eligible duties (except service tax) can be taken for
supplies received on or
after the appointed day if
the invoice was recorded in the books of accounts within 30 days from the
appointed day & statement is furnished.

140(7):
ITC on services received prior to the appointed day by an
ISD shall be eligible for distribution even if the invoices
relating to such services are received on or after the appointed day.

140(9):
If CENVAT
credit for input services provided under the existing law has been reversed due to non-payment of
consideration within 3 months, credit can be reclaimed payment is made within
3 months from the appointed day.

Eligible duties & taxes means the following taxes paid under existing
laws:

Tax/
duty

Section

Act

Excise
duty

3

Additional
Duties of Excise (Goods of Special importance) Act, 1957

3

Additional
Duties of Excise (Textile & Textile Articles) Act, 1978

Schedule
I , II

Central
Excise Tariff Act, 1985

Customs
duty

3
(1), (5)

Customs
Tariff Act, 1975

NCCD

136

the
Finance Act, 2001

Service
tax

66B

Finance
Act, 1994

141

Transitional provisions for job worker:

    
If any
inputs or semi-finished goods or excisable goods are sent to a job worker
without payment of tax under existing law prior to the appointed day &
such inputs or goods are returned within 6 months from the appointed day, no
tax shall be payable if manufacturer & job-worker declare the details of
the inputs or goods held in stock by the job-worker on the appointed day.

    
If said
inputs or goods are not returned within the specified period, ITC shall be
recovered u/s 142(8)(a).

    
The
manufacturer may transfer the said goods to the premises of any registered
person for supplying therefrom, on payment of tax in India or without payment
of tax for exports within specified period.

142

Miscellaneous transitional provisions:

142(1):
If goods on which duty had been paid under the existing law at the time of
removal (less than 6 months prior to the appointed day) are
returned by an unregistered person within 6 months from the
appointed day, the person shall be eligible for
refund.

142(2):
If in pursuance of a
contract entered into prior to
the appointed day, the
price of supply is revised on or after the appointed day, supplementary invoice or debit
or credit note shall be issued within 30 days of such revision & such
issue shall be deemed to be outward supply made under this Act.

If
recipient has not reduced ITC relating to credit note, supplier cannot reduce
his tax liability relating to credit note.

The
following
cases under existing law shall be disposed of as under:

Section

Case

Initiated

Claim
under existing law

142(3)

Refund
claim

At
any time

CENVAT
credit, tax, interest etc.

142(4)

Refund
claim for exported supply

After
appointed day

Any
duty or tax

142(5)

Refund
claim for services not provided

After
appointed day

Tax
paid

142(6)

Proceeding
of appeal, review etc.

At
any time

CENVAT
credit

142(7)

Proceeding
of appeal, review etc.

At
any time

Output
duty or tax

142(8)

Assessment
/adjudication proceedings

At
any time

CENVAT
credit, tax, interest etc.

142(9)

Return
under existing law is revised

After
appointed day

CENVAT
credit, tax, interest etc.

  
For
section 142(6) to (9): Rejected or recovered amount, if any, is
not admissible as ITC under this Act.

  
For
section 142(3) & (4): If refund
claim of CENVAT
credit is
rejected, the amount so rejected shall lapse.

  
For
section 142(3),(4) & (6):
No refund of CENVAT credit is
allowed
if it has already been c/f under
this Act.

142(11):
Notwithstanding anything contained in section 12 or 13
no tax is payable to the extent the tax was leviable under the VAT Act of the State or Chapter V of the Finance Act, 1994 & if tax is already paid then
credit can be taken for supplies after the appointed day.

142(12):
If
goods are sent on approval not less
than 6 months before the appointed day are rejected or returned within 6
months after the appointed day, no tax is payable.

142(13):
If
invoice is issued before appointed day but
payment is made on or after the appointed day,
TDS is not deducted u/s 51 even if required to be deducted under
any State or Union territory law relating to VAT.