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Chapter
XX: Transitional provisions
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139
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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.
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The final
certificate of registration shall be granted in prescribed form & manner.
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140
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Transitional arrangements for ITC:
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140(1): A person can avail CENVAT credit of eligible duties 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
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Credit
does not relate to goods cleared under notified exemption notifications
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All returns for the last 6 months under the
existing law are filed before the appointed date
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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.
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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
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All returns for the last 3 months under the existing
law are filed before the appointed date
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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
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Manufactures
or provides exempted
supply
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Provides
works contract service & was availing benefit of notification No. 26/2012
of ST
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Is a first
or second stage dealer or a registered importer or
a depot
of a manufacturer
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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
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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:
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The inputs
or goods are used for making taxable supplies under this Act
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The registered
person is eligible for ITC on such inputs under this Act
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Invoices
evidencing payment of duty under existing law is in possession
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Such
invoices were issued not earlier than 12 months before the appointed day
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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.
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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.
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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.
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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.
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Eligible duties & taxes means the following taxes paid under existing
laws:
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Tax/
duty
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Section
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Act
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Excise
duty
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3
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Additional
Duties of Excise (Goods of Special importance) Act, 1957
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Schedule
I , II
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Central
Excise Tariff Act, 1985
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Customs
duty
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3
(1), (5)
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Customs
Tariff Act, 1975
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NCCD
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136
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the
Finance Act, 2001
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Service
tax
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66B
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Finance
Act, 1994
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The
eligible duties & taxes excludes cess collected as additional duty of
customs u/s 3(1) of Customs Tariff Act, 1975 and cess which is not mentioned above.
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141
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Transitional provisions for job worker:
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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.
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If said
inputs or goods are not returned within the specified period, ITC shall be
recovered u/s 142(8)(a).
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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.
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142
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Miscellaneous transitional provisions:
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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.
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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.
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The
following cases under existing law shall be disposed of as under:
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Section
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Case
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Initiated
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Claim
under existing law
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142(3)
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Refund
claim
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At
any time
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CENVAT
credit, tax, interest etc.
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142(4)
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Refund
claim for exported supply
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After
appointed day
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Any
duty or tax
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142(5)
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Refund
claim for services not provided
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After
appointed day
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Tax
paid
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142(6)
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Proceeding
of appeal, review etc.
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At
any time
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CENVAT
credit
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142(7)
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Proceeding
of appeal, review etc.
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At
any time
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Output
duty or tax
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142(8)
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Assessment
/adjudication proceedings
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At
any time
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CENVAT
credit, tax, interest etc.
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142(9)
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Return
under existing law is revised
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After
appointed day
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CENVAT
credit, tax, interest etc.
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For
section 142(6) to (9): Rejected or recovered amount, if any, is not admissible as ITC under this Act.
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For
section 142(3) & (4): If refund claim of CENVAT
credit is rejected, the amount so rejected shall lapse.
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For
section 142(3),(4) & (6): No refund of CENVAT credit is
allowed if it has already been c/f under
this Act.
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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.
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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.
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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.
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