Section 142 - Miscellaneous transitional provisions of CGST ACT, 2017

                    142. (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:
             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
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.
            (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
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 or the rules made thereunder.

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