Amendment status not verified — confirm the current text below against the official source.
(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) 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) 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) 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. (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. . . (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; (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. (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. (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) of sub-section (3) without the seller being required to refund an amount of the tax tqthe purchaser. I . (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). (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. (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. (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. (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.