Amendment status not verified — confirm the current text below against the official source.
(1) Any offence under thisAct moy, either before or ofter the institu- tion of prosecution, be com- pounded by the Commissioner on poyment, by the person oc- cused ol the olfence, to the Cen- tolGovemment or fp S&e Crcv- ernment, os the cose moy be, of such compounding omount in such monner os moy be pre- scribed : Compoun4 ing of offences. 29r fto\riled fiol no0rirg conbined in this seclion sholl opply to - (o) o person who hos been ollowed to compound once in respect of ony of the olfences specified in clouses (o) to (0 of sub- section (l) of section 132 ond the oflences specified in clouse (l) which ore relotoble to offences specified in clouses (o) to (0 of the soid sub-section ; (b) o person who hos been ollowed to compound once in respect of ony offence, other thon those in clouse (o), under thisAd or under the provisions of ony Stote Goods ond Services Tox Act or the Centrol Goods ond Services Tox Ad or the Union Territory Goods ond Services Tox Act or the lntegroted Goods ond Services Tox Act in respect of supplies of volue exceeding one crore rupees ; (c) o person who hos been occused of committing on offence under this Act which is olso on offence under ony other lowfor the time being in force ; (d) o person who hos been convicted for on offence under this Act by o court ; 292 (e) o person who hos been occused of committing on offence specified in clouse (g) or clouse (j) or clouse (k) of sub-section (l) of section 132 ; ond (fl ony other closs of persons or oflences os moy be prescribed : Provided further thot ony com- pounding ollowed under tle provisions ofthis section sholl not offect the pro- ceedings, i{ ony, instituted under ony other low : Provided olso thot compounding sholl be ollowed only ofter moking poyment of tox, interest ond penolty involved in such offences. (2) The omountfor compounding of offences underthis section sholl be such os moy be prescribed, subiect to the minimum omount not being less thon ten thousond rupees or fifty per centofthe tox involved, whichever is higher, ond the moximum omount not being less thon thirty thousond rupees or one hundred ond fifty per cent of the tox, whichever is higher. (3) On poyment of such compound- ing omount os moy be deter- mined by the Commissioner, no further proceedings shollbe ini- tioted under thisAct ogoinst the occused person in respect ofthe some offence ond ony criminol proceedings, if olreody initioted in respect of the soid offence, shollstond oboted. 293 CHAPTER-XX TRANSITIONAL PROVISIONS r39.(r) (2) (3) r40. (r) On ond from the oppointed doy, every person registered under ony of the existing lows ond hoving o volid Permonent Account Number sholl be issued o certificote of registrotion on provisionol bosig subjed to such conditions ond in such form ond monner os moy be prescribed, which unless reploced by o finol certificote of registrotion under sub-section (2), sholl be lioble to be concelled if the conditions so prescribed ore not complied with. The finol certificote of registrotion shollbe gronted in such form ond monner ond subject to such conditions os moy be prescribed. The certificote of registrotion issued to o person under sub- seaion (l ) sholl be deemed to hove not been issued if the soid registrotion is concelled in pursuonce ofon opplicotion filed by such person thot he wos not lioble to registrotion under section 22 or section 24. A registered person, other thon o person opting to poy tox under section 10, sholl be entitled to toke, in his electronic credit ledger, credit of the omount of Volue Added Tox, ond Entry Tox, if ony, corried {orword in the return reloting to the period ending with the doy immediotely preceding the oppointed doy, lurnished by him under the existing low in such monner os moy be prescribed : Migrotion ol existing toxpoyers. Tronsitionol oronge- ments lor input tox credit. 7 4 ol 1956 291 Provided thot the registered person sholl not be ollowed to toke credit in the following circumstonces, nomely :- (D where the sokl omount of credit is not odmissible os input tox credit under this Act or (ii) where he hos not fumished oll $e returns required under the existing low for the period of six monfrs immediotely preceding the oppointed dote; or Provided further that so much of the soid credit os is ottributoble to orry doim reloted to seclion 3, sub-seaion (3) of section 5, sedion 6, section 6A or subsection (8) of section I of the Centrol Soles Tox Acl, 1956 which is not substantioted in the mdnner, ond within the peiod, prescribed in rule l2 of the Centrol Soles Tox (Registrotion ond Turnover) Rules, 1957 sholl not be eligible to be credited to the electronic credit ledger : Provided olso that an omount equivolent to the credit sryified in the second proviso shall be refunded under the existing low when the soid cloims ore substontioted in the monner prescribed in rule 12 of the Centrol Soles Tox (Registrotion ond Turnover) Rules, 1957. (2) A registered person, other thon o person opting to poy tox under section 10, sholl be entitled to toke, in his electronic credit ledgel credit of the unovoiled input tox credit in respect of copitol goods, not conied forword in o return, furnished under the 295 existing low by him, for the period ending with the doy immediotely preceding the oppointed doy in such monner os moy be prescribed : Provided thot the registered person sholl not be ollowed to toke credit unless the soid credit wos odmissible os input tox credit under the existing low ond is olso odmissible os input tox credit under this Act. ExplonotiorFF or the purposes of this section, the expression "unovoiled input tox credit" meons the omount thot remoins ofter subtrocting the omount of input tox credit olreody ovoiled in respect of copitol goods by the toxoble person under the existing low from te oggregote omount of input tox credit to which the soid person wos entitled in respect of the soid copitol goods under the existing low. (3) A registered person, who wos not lioble to be registered under the existing low orwho wos engoged in the sole of exempted goods or tox free goods, by whotever nome colled, or goods which hove suftbred tox ot the first point of their sole in the Stote and the subsequent soles of which ore not subject to tox in the Stdte under the existing low butwhich ore lioble to tox under this Act orwhere the person wos entitled to the credit of input tox ot the time of sole of goods, if ony, sholl be entitled to toke, in his electronic credit ledgel credit of the volue odded tox ond entry tox in respect of inputs held in stock 296 ond inputs contoined in semifinished or finished goods held in stock on the oppointed doy subject to the following conditions nomely :- (i) such inputs or goods ore used or intended to be used for moking toxoble supplies under this Act ; (ii the soid registered person is eligible for input tox credit on such inputs under this Act ; (iii) the soid registered person is in possession of invoice or other p rescribed documents evid e n cing poyment of tox under the existing low in respect of such inputs; ond (iv) such invoices or other prescribed docu ments were issued not eorlier thon twelve months immediotely preceding the oppointed doy: Provided thot where o registered person, other thon o monufocturer or o supplier of services, is not in possession of on invoice or ony other documents evidencing poyment of tox in respect of inputs, then, such registered person sholl, subiect to such cond itions, limitotions ond sofeguords os moy be prescribed, including thot the soid toxoble person sholl poss on the benefit of such credit by woy of reduced prices to the recipient, be ollowed to toke credit ot such rote ond in such monneros moy be prescribed. 297 (4) A registered person, who wos engoged in the sole of toxoble goods os well os exempted goods or tox free goods, by whotever nome colled, underthe existing low but which ore lioble to tox under this Act, sholl be entitled to toke, in his electronic credit ledgel- (o) the omount of credit of the volue odded tox ond entry tox, if ony, corried forword in o return furnished under the existing low by him in occordonce with the provisions of sub-section (1); ond (b) the omount ol credit of the volue odded tox ond entry tox, if any, in respect of inputs held in stock ond inputs contoined in semi- finished or finished goods held in stock on the oppointed doy, reloting to such exempted goods or tox free goods, by whotever n o me col led, in occor donce with the provisions of sub- section (3). (5) A registered person sholl be entitled to toke, in his electronic credit ledger, credit of volue odded tox qnd entry tox, if ony, in respect of inputs received on or ofter the oppointed doy but the tox in respect of which hos been poid by the supplier under the existing low, subject to the condition thot the invoice or ony other tox poying document ofthe some wos recorded in the books o{ occount of such person within o period of thirty doys from the oppointed doy : 298 Provided thot the period of thirty doys moy, on sufficient couse being shown, be extended by the Commissioner for o further period not exceeding thirty doys: Provided further thot the soid registered person sholl furnish o stotement, in such monner os moy be prescribed, in respea of creditthot hos been token under his subsection. (6) A registered person, who wos either poying tox ot o fixed rote or poying o fixed omount in lieu of the tox poyoble under the existing low sholl be entitled to toke, in his electronic credit ledger, credit of volue odded tox in respect of inputs held in stock ond inputs contoined in semi- finished or finished goods held in stock on the oppointed doy subiect to the following con- ditions, nomely :- (i) such inputs or goods ore used or intended to be used for moking toxoble supplies under this Act ; (ii) the soid registered person is not poying tox under section I 0 ; (iii) the soid registered person is eligible for input tox credit on such inputs under this Act ; (iv) the soid registered person is in possession of invoice or other prescribed documents evid en cing poyment of tox under the existing low in respect of inputs; ond 299 (v) such invoices or other prescribed documents were issued not eorlier thon twelve months immediotely preceding the oppointed doy. (7) The omount of credit under sub- sections (3), (4) ond (6) sholl be colculoted in such monner os moy be prescribed. l4l . (l ) Where ony inputs received ot o ploce of business hod been despotched os such or despotched ofter being portiolly processed to o job worker for furttrer processing, testing, repoir, reconditioning or ony other purpose in occordonce with the provisions of existing low prior to the oppointed doy ond such inputs ore returned to the soid ploce on or ofter the oppointed doy, no lox sholl be poyoble if such inputs, ofter completion of the job work or otherwise. ore returned to the soid ploce within six months from the oppointed doy : Provided thot the period ol six months moy, on sulficient couse being shown, be extended by the Commis- sioner for o further period not exceeding two months : Provided furtherthot if such inputs ore not returned within the period specified in this sub-section, the input tox credit sholl be lioble to be recovered in occordonce with the provisions of clouse (o) of sub-section (8) of section 142. Tronsitionol provisions reloting to job work. 300 (2) Where ony semi-finished goods hod been despotched from the ploce of business to ony other premises for corryinq out certoin monufocturing processes in occordonce with the provisions of existing low prior to the oppointed doy ond such goods (hereofter in this sub-section referred to os'the soid goods) ore returned tothe soid ploce on or ofter the oppointed doy, no tox shollbe poyoble if the soid goods, ofter undergoing monufocturing processes or otherwise, ore returned to the soid ploce within six months from the oppointed doy : Provided thot the period of six months moy, on sufficient couse being shown, be extended by the Commissioner for o further period not exceeding two months: Provided further thot if the soid goods ore not returned within o period speci{ied in this sub-section, the input tox credit sholl be lioble to be recovered in occordonce with the provisions of clouse (o) of sub-section (8) of section 142 : Provided olso thot the person despotching the goods moy, in occordonce with the provisions of the existing low, tronsfer the soid goods to the premises of ony registered person for the purpose of supplying therefrom on poyment of tox in lndio or without poyment of tox for exports within the period specified in this sub- section. 301 (3) Where ony goods hod been despotched from the ploce ol business without poyment of tox for corrying out tests or ony other process, to ony other premises, whether registered or not, in occordonce with the provisions of existing low prior to the oppointed doy ond such goods, ore returned to the soid ploce of business on or olter the oppointed doy, no tox sholl be poyoble if the soid goods, ofter undergoing tests or ony other process, ore returned to such ploce within six months from the oppointed doy : Provided thot the period of six months moy, on sufficient couse being shown, be extended by the Commissioner for o further period not exceeding two months : Provided further thot if the soid goods ore not returned within the period specified in this sub-section, the input tox credit sholl be lioble to be recovered in occordonce with the provisions ol clouse (o) ofsub-section (8) of section 142 : Provided olso thot the person despotching the goods moy, in occordonce with the provisions o{ the existing low, tronsfer the soid goods from the soid other premises on poyment of tox in lndio or without poyment of tox for exports within the period specified in this sub-section. (4) The tox under sub-sections (l ), (2) ond (3) sholl not be poyoble, only if the person despotching the goods ond the job worker 302 declore the detoils of the inputs or goods held in stock by the job worker on beholf ofthe soid per- son on the oppointed doy in such form ond monner ondwithin such time os moy be prescribed.