Refunds.

1. (1) Subject to the other provisions of this section and the rules made thereunder, the Commissioner shall refund to aperson the amount oftax, penaltyand interest, ifany, paid by such person in excess of the mount assessed or deemedto have been assessed and-due from him. - SERIES - I No. : 05 DATED laTH AUGUST, 2005.
2. (2) Before making any refund, thecommissioner shall first apply such excess referred to in sub-section
   • (I) towards therecovew ofany other amount due under this Regulation, or 74 of 1956. thereafter from thedues under the central sales Tax Act, 1956 if such dues rela& to sale of goods from the Daman and Diu under that Act.
3. (3) Subject to the provisions of sub-section (4). any amount remaining at the end of the financial year after the application of the excess amount referred to in sub-section (2) shall, at the option of the dealer, either-
   • (a) be refunded to the person within one yew after the date on which the claim was made for the refund; or
   • (b) be carried forward to the next tax period as a tax credit in that period.
4. (4) Where the Comniissioner has issued a notice to the person under section 58

informing him that an audit, investigation or inquiry into his business affairs shall be

undertaken, the excess amount referred to in sub-section (2) shall be carried forward to the next tax period as a tax credit in that period.

1. (5) The commissioner may, as a condition of the paytilent of a refund under this section, demand security from the person pursuant to the powers conferred in section 25. . .
2. (6) Notwithstanding anything contained in this section, where--
   • (a) a registered dealer has sold goods to a person who is not registered as a dealer under this Regulation;
3. (6) the price charged for the goods includes an amount oftax payable under this Regulation; and
   • (c) the dealer claims refund of this amount or to apply this amount under clause
   • (b) of sub-section (3), no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) unless the Commissioner is satisfied that the dealer has refunded the amount to the purchaser.
4. (7) Where-
   • (a) a registered dealer (hereafter referred toas seller) has sold goods to another registered dealer (hereafter referred to as the buyer); and
   • (b) the price charged for the goods expressly includes an athbunt of tax payable under this Regulation, the amount of tax may be refunied to the seller or may be applied by the seller under clause
   • (b) of sub-section (3) and in that case the Commissioner may reassess the buyer to disallow him the amount of the corresponding tax credit claimed by such buyer, whether or not the seller refunds the amount to the buyer.
5. (8) Where a registered dealer sells goo& and tlteprice charged forthegoods expressly indicate inclusion of an amount of tax payable under this Regulation, the amount ofthe tax may be refunded to the seller or may be applied by the seller under clause
6. (6) of sub-section
7. (3) without the seller being required to refund an amount of the tax tqthe purchaser. I.
8. (9) Notwithstanding anything contained in this section, if a registered dealer has ti led any return as required under this Regulation and the return shows any amount ofthe tax as refundable to the dealer on account of sales in course of export out ofthe territory of India, then, the dealer may apply in the manner and form prescribed, to the Ckmmissioner for grant

of provisional refund pending audit and investigation to establish the correctness of the

claim and consequent assessment, if any, subject to the provisions of sub-section (10).

1. (10) Subject to the provisions of sub-section (3), the Commissioner may require the

dealer to furnish a bank guarantee or other security, may be prescribed, for an amount

power to withhold refund in certain cases. Collection of tax only by registered dealers. Refund of lax for Embassies, ollicials, international and public organizations. Interest SERIES - I NO. : 05 DATED 1sTH AUGUST, 2005. equal to the amount of refund of tax and on receipt of such guarantee or other security, the

Commissioner shall grant the dealer a provisional refund which may be determined as

refundable within ninety days of application of claim of such refund.

1. (11) The Commissioner may direct the assessment or reassessment of such dealer in ,@pect ofthe year containing the period covered by thesaid return as expeditiously as possible and adjustthe grant ofprovisional refund against tax due, ifany, as a result of such assessment.
2. (12) If, on assessment or

reassessment, the provisional refund granted under sub-

seetion (2) is found to be in excess, then the excess shall be recovered as if it is tax due from the dealer under this Regulation.

1. (13) In a case the excess amount of tax has been refunded under sub-section (3), the interest shall be payable on such excess amount at the rate of two per cent. per month from the date ofgrant ofprovisional refund till the date ofassessment or reassessment, as the case' may be. 39. (1) Whereaperson is entitled to arefund and any proceeding under this Regulation is pending against him, or a notice under section 58 had been issued and assessment or re-

assessment in pursuance of the notice is pending and the Commissioner is

ofthe opinion that payment ofsuch refund is likelyto adversely affect the revenue and that it may not be possible to !e&gver the amount later, the Commissior~er may for reasons to be recorded in writing, eitheg~btain a security equal to the amount to be refunded to the person or withhold the refund till such time the proceeding or the assessment or re-assessment has been concluded or made.

1. (2) Where a refund is withheld under sub-section (I), the person shall be entitled to

interest as provided under sub-section

1. (I) of section 42 if, as a result of the appeal, or any other proceeding he becomes entitled to the refund.

40. (1) No person who is not a registered dealer shall collect in respect of any sale of

goods by him in Daman and Diu any amount by way of tax under this Regulation an! no

registered dealer shall make any such collection except in accordance with this Regulation

and the rules made thereunder and at the rates specified under this Regulation.

1. (2) Tax collected by a person who is not a registered dealer shall, without prejudice to any penalty or prosecution under this Regulation, stand forfeited to the Government. 41. (1) The Embassies, diplomatic officials and international or public organisations specified in the FiRh Schedule shall be entitled to claim a refund oftax paid on goods purchased in the Daman and Diu, subject to such restrictions and conditions as may be prescribed. (2)Any personentitled to a refund under sub-section(1) may apply to the Commissioner

in the manner and within the time, as may be prescribed.

42. (1) (a) A person entitled to a refund under this Regulation, shall be entitled to

receive, in addition to the refund, simple interest at such rate, as may be notified by the

Government from time to time.

1. (b) The simple interest at the rate specified under sub-section (I) shall be calculated from- ,
   • (I) the date from which the refund was due to be paid to the person; or (ill the date on which the person paid the excess amount, whichever is later, and such interest shall be calculated upto the date on which the refund is given. (c)The interest shall be calculated on the amount ofrefund due after deductingtherefiom any tax, interest, penalty or any other dues under this Regulation, or under the Central Sales Tax Act, 1956, if such dues relate to the sale ofgoods from Daman and Qiu.

74 of 1956.

SERIES - I No. : 05 DATED 1sTH AUGUST, 2005, (4 If the amount of such refund is enhanced or reduced, as the case may be, such interest shdl be enhanced or reduced accordingly.

1. (e) Ifthe delay in granting the refund is attributable to the said person, whether wholly or in part, the periodofthe delay attributable to him shall be excluded 60m the period for which the interest is

1. (2) When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at such rate, as may be notified by the Government from time to time from the date of such default until he makes such payment of taw, penalty or other amount.
2. (3) Where the amount oftax (includingany penalty due) is wholly reduced,the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.
3. (4) Where the collection ofany amount is stayed by theorder oftheAppellateTribunal or any court or any other authority and the order is subsequently vacated, interest shall be for any period during which such order remained in operation.
4. (5) The interest payable by a person under this Regulation may be collected as tax due

under this Regulation and shall be due and payable on and from the

obligation to pay thc interest has arisen. RECOVERY OF TAX, INTtiREST AND PENALTIES

43, (I) The amount of any tax, interest, penalty or other amount due under this

R~vnyof

Regulation shall be paid in the manner specified in section 36 and a notice of assessment

tax served onthe person for such an amount shall constitute a demand for payment ofthe amount

stated in the assessment by the time stipulated in the notice of assessment.

*

1. (2) On an application made before the expiry of the period under section 35, the

instalments, subject to such

conditionsas he may think fit to impose in the circumstances of the case.

(3)Any amount of tax, interest or penalty or other amount due under this Regulation which remains unpaid, shall be recoverable as anears of land revenue.

1. (4) Where security, other than in the form of surety bond, has been furnished under the Regulation, the Commissioner may, for reasons to be recorded in writing, recover any amount of tax, interest, penalty or other amount due or part thereof by ordering the forfeiture ofthe whole or any part of the security.
2. (5) Where any security tendered for the purposes of this Regulation is to be sold, it

shall be sold in the manner stipulated in section

63.