Drawback, set off, refund, etc.

(1) The Government may by rules provide that in such circumstances, and subject to such conditions as may be specified in such rules, a drawback, set-off or refund of the whole or any part of the tax on goods levied and collected under this Act, be granted to an operator by the prescribed authority, regard being had to the nature of goods carried, the destination to which and the purpose for which, the goods are carried and such other factors as may be prescribed.

(2) The Tax Officer shall refund to an Operator, in such manner as may be prescribed, the amount of tax and penalty if any, paid by such operator in excess of the amount due from him. The refund may be either by cash payment, or at the option of the operator, by deduction of such excess from the amount of tax and penalty, if any, due in respect of any other period:

Provided that, the Tax Officer shall first apply such excess towards the recovery of any amount due in respect of which a notice under section 9 has been served on the operator, and shall then refund the balance, if any.