Refund in certain cases

(1)

1. (a) A dealer effecting sales falling under sub-section (1), sub-section

1. (3) or sub-section
2. (5) of section 5 of the Central Sales Tax Act, 1956, in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of ninety days on a claim made on a return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder.
   • (b) In all other cases, the dealer shall make a claim for refund of the excess credit on the return in the form prescribed where such dealer has declared an excess credit for 24 consecutive months or more or in the event of cancellation of registration. The excess of tax shall be refunded within ninety days of the date of receipt of the claim.
   • (c) The claim for refund under this section shall be made on the return in the form prescribed.
   • (d) A dealer, who has paid tax in excess of the amount due for a tax period, may claim a credit in the next return.
3. (2) Where a dealer claiming the refund is required by the authority prescribed to provide accounts or records to substantiate the claim but fails to do so in a manner satisfactory to the authority prescribed within seven days of issue of notice, the time period specified in sub-section
4. (1) for making the refund shall not apply.
5. (3) Where a claim of a dealer is not accepted either in full or in part, the authority prescribed, shall send a notice in writing, to the dealer.
6. (4) A dealer aggrieved by the decision under sub-section
7. (3) may file an appeal as prescribed in this Act.
8. (5) The tax paid under this Act on the purchases made by specialised agencies of the United Nations Organisation and Consulates or Embassies of any country located in the Union Territory shall be refunded in such manner as may be prescribed.
9. (6) Where the authority prescribed is required to refund an amount of tax to a dealer as a result of,
   • (a) a decision under section 47 of this Act; or
   • (b) a decision of the Appellate Tribunal under section 49 of this Act; or
   • (c) a decision of the High Court under sections 50 and 51 of this Act, such refund shall be made within a period of ninety days from the date of the receipt of the order.
10. (7) Where such refund is not made within the stipulated time, the amount of refund shall carry interest at the rate of one per cent per month or part thereof on the amount of the refund for the period of delay.