Transitional provisions relating to job work

(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.