THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
TRANSITIONAL PROVISIONS
Section 142:
Miscellaneous transitional provisions
(1) Where any goods on which duty, if any, had been paid under the
existing law at the time of removal thereof, not being earlier than six months
prior to the appointed day, are returned to any place of business on or after
the appointed day, the registered person shall be eligible for refund of the
duty paid under the existing law where such goods are returned by a person,
other than a registered person, to the said place of business within a period
of six months from the appointed day and such goods are identifiable to the
satisfaction of the proper officer:
Provided that if the said goods are returned by a registered person, the return
of such goods shall be deemed to be a supply.
*(2)
(a) where, in pursuance of a contract entered into prior to the appointed day,
the price of any goods or services or both is revised upwards on or after the
appointed day, the registered person who had removed or provided such goods or
services or both shall issue to the recipient a supplementary invoice or debit
note, containing such particulars as may be prescribed, within thirty days of
such price revision and for the purposes of this Act such supplementary invoice
or debit note shall be deemed to have been issued in respect of an outward
supply made under this Act;
(b) where, in pursuance of a contract entered
into prior to the appointed day, the price of any goods or services or both is
revised downwards on or after the appointed day, the registered person who had
removed or provided such goods or services or both may issue to the recipient a
credit note, containing such particulars as may be prescribed, within thirty
days of such price revision and for the purposes of this Act such credit note
shall be deemed to have been issued in respect of an outward supply made under
this Act:
Provided
that the registered person shall be allowed to reduce his tax liability on account
of issue of the credit note only if the recipient of the credit note has
reduced his input tax credit corresponding to such reduction of tax liability.
(3) Every
claim for refund filed by any person before, on or after the appointed day, for
refund of any amount of CENVAT credit, duty, tax, interest or any other amount
paid under the existing law, shall be disposed of in accordance with the
provisions of existing law and any amount eventually accruing to him shall be
paid in cash, notwithstanding anything to the contrary contained under the
provisions of existing law other than the provisions of subsection (2) of
section 11B of the Central Excise Act, 1944:
Provided that where any claim for refund of CENVAT credit is fully or partially
rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit
where the balance of the said amount as on the appointed day has been carried
forward under this Act.
(4) Every claim for refund filed after the appointed day for refund of any duty
or tax paid under existing law in respect of the goods or services exported
before or after the appointed day, shall be disposed of in accordance with the
provisions of the existing law:
Provided that where any claim for refund of CENVAT credit is fully or partially
rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit
where the balance of the said amount as on the appointed day has been carried
forward under this Act.
(5) Every claim filed by a person after the appointed day for refund of tax paid
under the existing law in respect of services not provided shall be disposed of
in accordance with the provisions of existing law and any amount eventually
accruing to him shall be paid in cash, notwithstanding anything to the contrary
contained under the provisions of existing law other than the provisions of
sub-section (2) of
section 11B of the Central Excise Act, 1944
(6) (a) every proceeding of appeal, review or reference relating to a claim for
CENVAT credit initiated whether before, on or after the appointed day under the
existing law shall be disposed of in accordance with the provisions of existing
law, and any amount of credit found to be admissible to the claimant shall be
refunded to him in cash, notwithstanding anything to the contrary contained
under the provisions of existing law other than the provisions of sub-section
(2) of
section 11B of the Central Excise Act, 1944 and the amount rejected, if
any, shall not be admissible as input tax credit under this Act:
Provided that no refund shall be allowed of any amount of CENVAT credit where
the balance of the said amount as on the appointed day has been carried forward
under this Act;
(b)
every proceeding of appeal, review or reference relating to recovery of CENVAT
credit initiated whether before, on or after the appointed day under the
existing law shall be disposed of in accordance with the provisions of existing
law and if any amount of credit becomes recoverable as a result of such appeal,
review or reference, the same shall, unless recovered under the existing law,
be recovered as an arrear of tax under this Act and the amount so recovered
shall not be admissible as input tax credit under this Act.
(7) (a)
every proceeding of appeal, review or reference relating to any output duty or
tax liability initiated whether before, on or after the appointed day under the
existing law, shall be disposed of in accordance with the provisions of the
existing law, and if any amount becomes recoverable as a result of such appeal,
review or reference, the same shall, unless recovered under the existing law,
be recovered as an arrear of duty or tax under this Act and the amount so
recovered shall not be admissible as input tax credit under this Act.
(b)
every proceeding of appeal, review or reference relating to any output duty or
tax liability initiated whether before, on or after the appointed day under the
existing law, shall be disposed of in accordance with the provisions of the
existing law, and any amount found to be admissible to the claimant shall be
refunded to him in cash, notwithstanding anything to the contrary contained
under the provisions of existing law other than the provisions of subsection
(2) of
section 11B of the Central Excise Act, 1944 and the amount rejected, if
any, shall not be admissible as input tax credit under this Act.
(8) (a)
where in pursuance of an assessment or adjudication proceedings instituted,
whether before, on or after the appointed day, under the existing law, any
amount of tax, interest, fine or penalty becomes recoverable from the person,
the same shall, unless recovered under the existing law, be recovered as an
arrear of tax under this Act and the amount so recovered shall not be
admissible as input tax credit under this Act;
(b)
where in pursuance of an assessment or adjudication proceedings instituted,
whether before, on or after the appointed day, under the existing law, any
amount of tax, interest, fine or penalty becomes refundable to the taxable
person, the same shall be refunded to him in cash under the said law,
notwithstanding anything to the contrary contained in the said law other than
the provisions of sub-section (2) of
section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax
credit under this Act.
(9) (a)
where any return, furnished under the existing law, is revised after the
appointed day and if, pursuant to such revision, any amount is found to be
recoverable or any amount of CENVAT credit is found to be inadmissible, the
same shall, unless recovered under the existing law, be recovered as an arrear
of tax under this Act and the amount so recovered shall not be admissible as
input tax credit under this Act;
(b) where any return, furnished under the existing law, is revised after the
appointed day but within the time limit specified for such revision under the
existing law and if, pursuant to such revision, any amount is found to be
refundable or CENVAT credit is found to be admissible to any taxable person,
the same shall be refunded to him in cash under the existing law,
notwithstanding anything to the contrary contained in the said law other than
the provisions of sub-section (2) of
section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax
credit under this Act.
(10) Save as otherwise provided in this Chapter, the goods or services or both
supplied on or after the appointed day in pursuance of a contract entered into
prior to the appointed day shall be liable to tax under the provisions of this
Act.
(11) (a) notwithstanding anything contained in
section
12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of
the State;
(b) notwithstanding anything contained in
section 13, no tax shall be payable on services under this Act to the extent
the tax was leviable
on the said services under Chapter V of the Finance Act, 1994;
(c) where tax was paid on any supply both under the Value Added Tax Act and
under Chapter V of the Finance Act, 1994, tax shall be
leviable
under this Act and the taxable person shall be entitled to take credit of value
added tax or service tax paid under the existing law to the extent of supplies
made after the appointed day and such credit shall be calculated in such manner
as may be prescribed.
(12) Where any goods sent on approval basis, not earlier than six months before
the appointed day, are rejected or not approved by the buyer and returned to
the seller on or after the appointed day, no tax shall be payable thereon if
such goods are returned within six months from the appointed day:
Provided that the said period of six months may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding two
months:
Provided further that the tax shall be payable by the person returning the
goods if such goods are liable to tax under this Act, and are returned after a
period specified in this subsection:
Provided also that tax shall be payable by the person who has sent the goods on
approval basis if such goods are liable to tax under this Act, and are not
returned within a period specified in this sub-section.
(13) Where a supplier has made any sale of goods in respect of which tax was
required to be deducted at source under any law of a State or Union territory
relating to Value Added Tax and has also issued an invoice for the same before
the appointed day, no deduction of tax at source under
section 51 shall be made
by the deductor under the said section where payment
to the said supplier is made on or after the appointed day.
Explanation.––For the purposes of
this Chapter, the expressions “capital goods”, “Central Value Added Tax
(CENVAT) credit” “first stage dealer”, “second stage dealer”, or “manufacture”
shall have the same meaning as respectively assigned to them in the Central
Excise Act, 1944 or the rules made thereunder.