CHAPTER-VII

REFUND

64. Refund. (1) No application is required for sanction of refund arising out of
any order of appeal, revision or rectification under the Act and such refund shall be
allowed within sixty days of the date of receipt of such order.
(2) Refund sanctioned under sub-rule (1) shall be paid, either through refund
adjustment voucher or through refund payment voucher or both.
(3) The refund adjustment voucher shall be in Form VAT -318 and the refund
payment voucher shall be in Form VAT 319.
(4) Refund arising out of a return furnished for any tax period subject to
exceptions as specified under rule 66, shall be carried forward for adjustment of tax due
and payable in subsequent tax period or tax periods, until the expiry of a period of twenty
four months, from the end of the year to which that tax period relates.
65. Refund under special circumstances. (1) (a) Where any dealer claims
refund in the return furnished for a tax period on account of sales as specified in clause
(b) of section 18, he shall make an application in Form VAT -320 to the assessing
authority of the circle or range, as the case may be, within thirty days from the date of
furnishing such return:
Provided that an application for refund made after thirty days may be admitted by
the assessing authority, if he is satisfied that the dealer had sufficient cause for not
making the application within the said period.
(b) The application filed under clause (a) of sub-rule (1) shall be accompanied
by copies of the purchase order placed by the foreign buyer with the dealer, the
agreement with the foreign buyer, bill of lading, letter of credit, and / or evidence of
payment made by the foreign buyer and such other evidences as may be required to
establish the claim of refund.
(c ) The assessing authority, on receipt of the application for refund along with
the documents referred to in clause (b), shall refer the case for tax audit to determine the
admissibility or otherwise of the claim of refund.
 (d) If the application under this sub-rule is found to be correct and complete
and the tax audit finds the claim of refund to be correct and is supported by the required
evidences, and after receipt of report of such findings, the assessing authority shall
sanction the refund claimed.
(e) Where the tax audit results in assessment, the claim of refund shall be
subject to the result of such assessment :
Provided that in calculating the period of ninety days the period taken for
completion of assessment consequent upon tax audit shall be excluded.
(f) If the dealer exercises option in writing in Form VAT-321 for provisional
sanction of refund pending audit and consequent assessment, if any, the assessing
authority shall require such dealer to furnish bank guarantee for an amount equal to the
claim of refund on such terms and conditions, as he may specify, pledged in favour of
such authority.
(g) The assessing authority, on receipt of the bank guarantee as referred to in
clause (f), shall grant refund provisionally the amount determined by such authority to be
refundable.
(h) The provisional refund granted under clause (g) shall be subject to the
provision of clause (b).
(i) On receipt of the audit visit report, pursuant to the reference made under
clause (c), the assessing authority shall proceed to assess the dealer, if so required, as a
result of audit, under section 42 and, determine the correct amount of refund admissible
under the provisions of the Act and these rules.
(j) The final refund or demand of tax, penalty or interest, shall be determined
in accordance with the order passed on assessment under section 42.
(k) Subject to the provision of clause (g) of sub-section (1) of section 58, the
bank guarantee furnished at the time of sanction of provisional refund shall be released,
by order in Form VAT -322, and handed over to the dealer on receipt of
acknowledgement.
Provided that the acceptance or rejection of the claim of refund shall be made
before the validity of the bank guarantee or extension thereof, if any, expires.
 (l) Where the claim of refund is reduced, the excess amount, if any, sanctioned
towards refund provisionally, shall be paid by the dealer on receipt of order in Form VAT
-312 and such dealer shall be liable to pay interest at the rate of two per cent per month
on such excess amount from the date of sanction of refund to the date of its payment by
the dealer.
(2) (a) Where any dealer claims refund in the return furnished for a tax period
on account of sales as specified in clause (c) of section 18, he shall make an application
in Form VAT-320 to the assessing authority of the range, within thirty days from the date
of furnishing of such return and the application so made shall be accompanied by
documents as specified in clause (c) of this sub-rule:
Provided that an application for refund made after thirty days may be admitted
by such assessing authority if he is satisfied that the dealer had sufficient cause for not
making the application within the said period.
(b) The excess input tax credit in any tax period, for which refund is claimed
under this sub-rule, shall be carried over to six consecutive tax periods, following that tax
period, for adjustment against output tax and the amount found refundable at the end of
such tax periods, shall be refunded in accordance with the provisions of clauses (c ), (d),
(e) and (l) of sub-rule (1).
(c) The application for refund furnished under clause (a) of sub-rule (2) shall
be accompanied by the copy of the tax invoice, certificate of the competent authority
showing the name and address of the dealer and the SEZ or the STP or the EHTP, under
which it is established and the entitlement of the dealer to purchase goods free of tax
covered under such tax invoice and such other evidence, as may be required to establish
the claim of refund.
(3) (a) Where any dealer claims refund in the return furnished for a tax period
on account of sales as specified in clause (d) of section 18, he shall make an application
in Form VAT -320 to the assessing authority of the range, within thirty days from the
date of furnishing such return:
Provided that an application for refund made after thirty days may be admitted
by the assessing authority if he is satisfied that the dealer had sufficient cause for not
making the application within the said period.
 (b) The application under clause (a) shall be accompanied by a copy of the
tax invoice and the certificate from the competent authority showing that the purchasing
dealer is a EOU and that such dealer is entitled to purchase goods free of tax and such
other evidence as may be required to establish the claim of refund.
(c) The refund under this sub-rule shall be subject to the provisions of clauses
(c), (d), (e), (f), (g), (h), (i), (j), (k) and (l) of sub-rule (1).

(4) (a) The claim of refund arising out of clause (a) of sub-section (2) of
section 58 shall be made by application in Form VAT -323 signed and verified by an
authorised officer.
(b) The grant of refund claimed under this sub-rule shall be subject to the
following conditions :--
(i) the purchase should have been made from a registered dealer in the
State on payment of tax supported by a retail invoice;
(ii) each retail invoice shall be in the minimum for a tax-exclusive
price of Rs.1,000/-;
(iii) the claim shall be made quarterly;
(iv) the goods involved in the purchases are only for official use; and
(v) the application for refund shall be filed within a period of fourteen
days from expiry of the quarter.
66. Refund of input tax credit carried forward beyond a period of twenty-
four months. The claim of refund under clause (a) of sub-section (4) of section 58
shall be made in Form VAT -324 to the assessing authority of the circle or range, as the
case may be, within one month from the date of expiry of the period of twenty four
months from the end of the year to which the tax period relates:
Provided that where the application as referred to in this rule is not made
within the period of one month, it will be deemed that the dealer has exercised option to
carry forward the excess input tax credit for adjustment against output tax payable in
subsequent tax periods:
 Provided further that an application for refund made after the period of one
month may be admitted by the assessing authority if he is satisfied that the dealer had
sufficient cause for not making the application within the said period.