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 sub-section (2) of section 11B of the Central Excise Act, 1944 (1
of 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 (1 of 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 (1 of 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 sub-section (2) of section 11B of the Central Excise Act,
1944 (1 of 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 (1 of 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 (1 of 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 (32 of
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 (32 of 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 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 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 (1 of 1944) or the rules made
thereunder.
