Chapter XX TRANSITIONAL PROVISIONS

(1) On and from the appointed day, every person registered under any of the existing laws and having a Permanent Account Number issued under the provisions of the Income-tax Act, 1961 (Act No. 43 of 1961) shall be enrolled electronically on the Common Portal and shall be issued a certificate of registration on provisional basis. (2) The certificate of registration issued under sub-section (1) shall be valid for such period as may be notified by the Government: Provided that in respect of those persons who have been granted provisional registration, the period of validity of such registration may be extended by the Government on the recommendation of the Council. (3) The certificate of registration issued under sub-section (1) shall be cancelled if the conditions prescribed in this behalf are not fulfilled. (4) Every person to whom a certificate of registration has been issued under sub-section (1) shall, within such period as may be prescribed, furnish such information as may be prescribed on the Common Portal. (5) The certificate of registration issued under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person who was not liable to registration under sub-section (2) or sub-section (3) of section 22 or clause (b) of section 24: Provided that the cancellation so performed shall be deemed to have been effective from the appointed day. (6) Notwithstanding anything contained in sub-section (1), any person having a provisional registration shall be granted final registration if he complies with the conditions as may be prescribed. (7) The supplier of goods or services or both who is not liable to be registered under this Act and who is registered under any of the existing laws shall be issued the provisional certificate of registration on the Common Portal and shall be liable to furnish such information as may be prescribed. (8) The registration or the enrolment of any person as a taxpayer or as a tax deductor or as an Operator under the existing laws shall not be cancelled under this Act, if the person who is liable to be registered under this Act fails to furnish the prescribed information required under this section.

(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit [of the eligible duties] carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:— (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed day; or (iii) where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government. (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit unless the said credit was admissible as CENVAT credit under the existing law and is also admissible as input tax credit under this Act. Explanation.-For the purposes of this sub-section, the expression "unavailed CENVAT credit" means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of capital goods by the registered person under the existing law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the existing law. (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or goods which are wholly exempt from tax or who was providing services which are not liable to tax or was carrying on the business as the works contractor, or any other registered person, shall be entitled to take, in his electronic credit ledger, credit of the eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:— (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is eligible for input tax credit on such inputs under this Act; (iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs; (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and (v) the supplier of services is not eligible for the abatement under this Act: Provided that where a registered person, other than a manufacturer or a provider of output services, is not in possession of an invoice or any other document evidencing payment of duty in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. (4) A registered person, who was engaged in the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 or engaged in the provision of taxable as well as exempted services, shall be entitled to take, in his electronic credit ledger,- (a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of sub-section (3). (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: Provided that the period of thirty days may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding thirty days: Provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section. (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:— (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is not paying tax under section 10; (iii) the said registered person is eligible for input tax credit on such inputs under this Act; (iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs; and (v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (7) Notwithstanding anything to the contrary contained in this Act, the amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed. (8) A registered person, who was engaged in the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 or engaged in the provision of taxable as well as exempted services, shall be entitled to take, in his electronic credit ledger,- (a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of sub-section (3). (9) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed. (10) The amount of credit under any of the sub-sections of this section shall be calculated in such manner as may be prescribed.

(1) A registered person shall not be liable to pay any tax under this Act on goods supplied to a job worker before the appointed day and returned to him after the appointed day if such goods are returned within a period of six months, or any extension thereof, from the appointed day: Provided that the 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 if such goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142. (2) The manufacturer, in accordance with the provisions of the existing law, shall not be liable to pay any tax under this Act on goods removed to a job worker for the purposes of test or any other process before the appointed day and returned to him after the appointed day if such goods are returned within a period of six months, or any extension thereof, from the appointed day: Provided that the 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 if such goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142. (3) The goods removed for the purposes of the job work shall be deemed to have been supplied by the principal on the day when the job worker removes the goods after completing the job work or receives the goods back, if they are not returned within the period specified in this section. (4) In case of goods produced under the existing law and removed for the purpose of job work before the appointed day and returned after the appointed day, no tax shall be payable if the job worker, after completion of the job work, returns the goods within the period specified in this section: Provided that if the goods are not returned within the prescribed period, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142.

(1) Where any goods on which duty, if any, had been paid under the existing law at the time of removal thereof, are returned to any place of business on or after the appointed day, the person returning the goods shall be eligible for refund of the duty paid under the existing law if such goods are returned by a person, other than a registered person, 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 before 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 such supplementary invoice or debit note shall, for the purposes of this Act, 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 before 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 such credit note shall, for the purposes of this Act, 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 any credit note issued by him under this sub-section 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 contained under the provisions of any law other than the Finance Act, 1994: 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) Notwithstanding anything to the contrary contained in this Act, any amount that becomes recoverable as a result of an adjudication or other proceedings held under the existing law, whether before, on or after the appointed day, shall, unless recovered under this Act, 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. (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 the existing law, and any refund amount of CENVAT credit shall be paid in cash, notwithstanding anything contained in the provisions of any law other than the Finance Act, 1994 and the provisions of any other law relating to the recovery of arrears of tax: 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. (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 the existing law and any amount of credit found to be recoverable shall 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 any amount found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything contained in the provisions of any law other than the Finance Act, 1994: (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 recoverable shall 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. (8) (a) Where in pursuance of an assessment or adjudication proceeding 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 proceeding 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 contained in the provision of any law other than the Finance Act, 1994. (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 contained in the provision of any law other than the Finance Act, 1994. (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, if any, as admissible under the provisions of this Act: Provided that such credit shall be adjusted first against the output tax liability under this Act, and the balance, if any, shall be refunded in cash. (12) Where any goods sent on an approval basis, not being 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 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 the period specified in this sub-section: 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 the 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 as in force before the appointed day 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 on the said payment.