Transition of closing balance of ISD as on 30.06.2017 into GST - Goods and Services Tax - GST

We had closing balance of ISD Credit under Service Tax as on 30.06.2017 and carried forwarded the same through TRAN-1 form under GST. Now the department is objecting the same by stating that ISD balance cannot be transferred to GST through TRAN-1 as Section 140(1) is not allowing transition of ISD credit into GST. Whereas Section 140(7) is allowing the distribution of ISD credit of Service Tax in GST regime and the same is having overriding effect of all other provisions. Please have the considered opinion on the same.