TaxTMI 
TaxTMI 
2019 (7) TMI 678
X X X X Extracts X X X X
X X X X Extracts X X X X
....aw 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 date; 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 purp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4, but which are liable to tax under this Act, 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 subsection (1); and (b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semifinished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of subsection (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 da....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unt is admissible as input tax credit under this Act: Provided also that such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralised registration was obtained under the existing law. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to nonpayment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (10) The amount of credit under subsections (3), (4) and (6) shall be calculated in such manner as may be prescribed. Explanation 1.-For the purposes of subsections (3), (4) and (6), the expression "eligible duties" means-- (i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957; (ii) the additional duty leviable under subsection (1) of section 3 of the Customs Tariff Act, 1975; (iii) the additional duty leviable under subsection (5) of section 3 of the C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and figures "subsections (1) and (5)" shall be substituted and shall always be deemed to have been substituted. (ii) clause (iv) shall be omitted and shall always be deemed to have been omitted. (d) After Explanation 2 as so amended, the following Explanation shall be inserted and shall always be deemed to have been inserted namely Explanation 3 - For removal of doubts, it is hereby clarified that the expression "eligible duties and taxes" excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub0section (1) of Section 3 of the Customs Tariff Act, 1975." 3 The challenge to the constitutional validity of the Amendment Act has something to do with the credit of Education Cess (for short, "EC"), and the Secondary and Higher Secondary Education Cess (for short, "SHEC"). The challenge is substantially on the ground that the amendment seeks to retrospectively disallow the transition and carry forward of the EC and SHEC in the GST regime, which was levied on the inputs, capital goods and inputs services used in the manufacture of excisable products, which were cleared on the payment....