Page 79 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] P.R. MANI ELECTRONICS v. UNION OF INDIA 5
(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 preced-
ing the appointed date; or
(iii) where the said amount of credit relates to goods manufac-
tured 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 for-
ward 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 purposes of this sub-section, the expression “un-
availed CENVAT credit” means the amount that remains after subtracting
the amount of CENVAT credit already availed in respect of capital goods
by the taxable person under the existing law.
(3) A registered person, who was not liable to be registered under
the existing law, or who was engaged in the manufacture of exempted
goods or provision of exempted services, or who was providing works con-
tract service and was availing of the benefit of notification No. 26/2012-
Service Tax, dated the 20th June, 2012 or a first stage dealer or a second
stage dealer or a registered importer or a depot of a manufacturer, shall be
entitled to take, in his electronic credit ledger, credit of eligible duties in re-
spect of inputs held in stock and inputs contained in semi-finished or fin-
ished goods held in stock on the appointed day subject to the following
conditions, namely :-
(i) such inputs or goods are used or intended to be used for mak-
ing taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on
such inputs under this Act;
(iii) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of duty under the
existing law in respect of such inputs;
(iv) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the ap-
pointed day; and
(v) the supplier of services is not eligible for any abatement under
this Act :
Provided that where a registered person, other than a manufacturer or
a supplier of services, is not in possession of an invoice or any other docu-
ments evidencing payment of duty in respect of inputs, then, such regis-
tered person shall, subject to such conditions, limitations and safeguards as
may be prescribed, including that the said taxable person shall pass on the
benefit of such credit by way of reduced prices to the recipient, be allowed
to take credit at such rate and in such manner as may be prescribed....”
GST LAW TIMES  6th August 2020  79