CHAPTER-VII
REFUNDS

52. Procedure for refund

(1) An application for refund of an amount of tax, penalty or interest admissible under the Act and these rules shall be made to the designated officer in Form VAT-29. The application so made shall contain the grounds on which the refund is claimed.

 

(2) The application for a claim of refund under section 18 on account of direct export out of the territory of India, shall be supported by the following documents , namely :-

    (a) copy of the invoice issued to the foreign buyer;

    (b) Bill of lading, Airway Bill, Shipping Bill or similar documents, containing “Let Export Order” endorsed by  Customs Authorities;

    (c) Custom clearance certificate in case of export to Nepal and Bhutan; or

    (d) any other document ,which may be specified  by the Government.

(3) The application for a claim of refund on account of penultimate export  shall be supported by the following documents, namely :-

    (a) copy of Bill of lading, Airway Bill, Shipping Bill or similar documents, containing “Let Export Order” as endorsed by

Customs Authorities; and

    (b) copy of the invoice issued to the purchaser.

(4) For the refund arising due to excess input tax credit, which may be due to inter state sales, consignment or branch transfers sales, exports or  any other reason under the Act, the person claiming refund,  shall attach the documentary evidence in the form of statutory declarations prescribed under the Central Sales Tax Act, 1956, i.e., C, D, F, H, E1 or E2 forms, as the case may be, or any other proof  with annual statement prescribed under rule 40.

(5)  Any claim not supported by the aforesaid documents, shall not be admissible to the extent of such document being not furnished, And the person shall file annual statement accordingly alongwith the additional tax interest or penalty, if any.

(6)   If the designated officer after making such scrutiny and inquiry, as he deems necessary, is satisfied that the claim of refund is admissible, he shall subject to the provisions of section 39, determine the amount of refund and shall:-

        (a)   if the amount to be refunded does not exceed rupees one lac, record the orders of sanctioning the refund; and

        (b)    if the amount to be refunded exceeds rupees one lac, submit the record of the case together with his recommendations to the

Assistant Excise and Taxation Commissioner, in-charge of the district for final orders of refund, who shall record the orders of sanctioning the refund.

(7) Where the refund is arising out of a judgement of a court or an order of an authority under the Act, the person claiming the refund, shall also append a certified copy of such judgement or order.

(8) No refund shall be allowed, if the person has not filed return or paid tax  as per provisions of the Act and these rules. 

(9) (a) Persons or organizations listed in Schedule – G , may apply to    the designated officer  for the  refund of tax in Form VAT – 29A.

     (b) The refund, shall be granted only on certification given by the person or the Chief of the organization that the goods are purchased for use in the official function of the organization.

     (c) Refund of tax under clause (a), shall be allowed on purchases made from a taxable person or a registered person against invoice.

(10)  The refund voucher in Form VAT-30 or refund adjustment order in Form VAT–30A, as the case may be, shall be issued within a period of sixty days from the date of submission of application for refund.

(11) Where claim for refund is found inadmissible, the designated officer shall issue a notice to the applicant asking him to show cause as to why the application should not be rejected. If the designated officer is not satisfied with the reasons, adduced by the applicant, he may reject the application for refund.  

(12) The refund made under section 18 or section 39, as the case may be, shall be entered in the refund register maintained for this purpose in Form VAT-30 C and VAT-30-B, respectively.