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41.
Refund. section 20.
(1)
No amount representing input tax shall be refundable except in accordance with
the provisions of sub-rules (2) and (3).
(2)
Subject to the provisions of sub-rule (4), any amount representing input tax
relating to the goods which have been sold in the course of export out of the
territory of India, or which have been used in manufacturing and the
manufactured goods have been sold in the course of export out of the territory
of India, shall be refundable in full to the exporting dealer.
(3)
Subject to the provisions of sub-rule (4), any amount representing input tax
relating to the goods which or the goods manufactured from which have been sold
in the State or in the course of inter-State trade and commerce shall be
refundable to the extent the input tax exceeds the tax calculated on sales on
account of difference in rates of tax at which the input tax has been calculated
and the rates at which the tax on sales has been calculated.
Illustration.–
1. Input tax in respect of goods purchased by a VAT dealer D is Rs.10,000/-, D
sells these goods in the course of export of goods out of the territory of
India. D’s liability to pay tax on account of sales made in the State and in
the course of inter-State trade and commerce totals to Rs.8,000/-. D is entitled
to a refund of Rs.2,000/-.
2.
D purchases goods from VAT dealers in the State for Rs.1,00,000/-. D is charged
to tax @10% on these sales. D sells these goods in the State to manufacturers
for Rs.1,50,000/- against declarations charging tax @4%. D is entitled to a
refund of Rs.4,000.
3.
In illustration 2, if D sells goods at a loss in the course of inter-State trade
for Rs.90,000/- against declarations in Central form C chargeable to tax @4%, D
will be entitled to a refund of Rs.5,400/- and D can carry forward credit of
Rs.1,000/- for adjustment with tax liability for the next quarter.
(4)
While framing the assessment of a dealer for any period, the assessing authority
shall, after such scrutiny of its record and the record maintained by the dealer
and after making such enquiries as it considers necessary, determine the output
tax, purchase tax, input tax and the amount of tax paid by the dealer for the
assessment period. If the assessing authority finds that the sum of tax paid and
input tax exceeds the sum of output tax and purchase tax, it shall determine the
excess amount and from the excess amount it shall then deduct any amount due
from the dealer, whether under the Act or the Central Act and it shall allow
from the balance amount refund of the amount determined in accordance with the
provisions of subrules (1), (2) and (3). If the balance amount falls short of
the amount determined under sub-rules (1), (2) and (3), the refund shall be
restricted to the balance amount otherwise it shall be allowed in full and the
balance left thereafter, if any, shall be carried forward for adjustment with
future tax liability. The assessing authority shall, in respect of the amount to
be refunded to the dealer, issue to him at his option a refund payment order in
form S.T.R.34 prescribed under the Punjab Subsidiary Treasury Rules or refund
adjustment order in Form VAT-G9 and where it fails to do so within sixty days of
the date of the assessment order allowing the refund, there shall be paid
interest to the claimant at the rate of one per cent per month from the
date
of the order to the date when the refund payment order or refund adjustment
order, as the case may be, is issued to him.
Illustration
– D, a VAT dealer, is assessed to output tax, purchase tax and input tax at
Rs.50,000/, nil and Rs.40,000 respectively. D paid Rs.32,000/- as tax. D sold
goods in the course of export out of the territory of India for Rs.10,00,000/-.
Input tax in respect of the goods exported is Rs.10,000/-. Nothing is due from D
under the Act but Rs.8,000/- is due from him under the Central Act. D’s refund
claim of Rs.10,000/- is in order and he is further entitled to carry forward tax
credit of Rs.4,000/- to next tax period.
(5)
Where a refund of any amount paid by any dealer or other person becomes payable
as a result of the order of any appellate or revising authority or any court and
the same is not the subject-matter of any further proceedings, such dealer or
such other person shall make an application to the officer incharge of the
district concerned in case he is the owner of the goods in respect of which
penalty imposed under sub-section (8) of section 31 has been quashed or reduced
and in other cases to the assessing authority concerned, along with the original
copy of the order which constitutes the basis for refund and the authority to
whom the application is made shall order the refund of the excess amount in the
manner specified in sub-rule (4) and where the said authority fails to do so
within sixty days of the receipt of such application, there shall be paid
interest to the claimant at the rate of one per cent per month from the date of
making the application to the date when the refund payment order or refund
adjustment order, as the case may be, is issued to him.
(6)
A VAT dealer may on quarterly basis claim refund of input tax in the
circumstances specified in sub-rules (2) and (3), by making an application to
the appropriate assessing authority in Form VAT-A4 and appending thereto the
following documents, namely, -
(i)
copy of the return(s) in Form VAT-R1 under these rules and in Form I under the
Central Sales Tax (Punjab) Rules, 1957, as applicable to the State of Haryana,
for the quarter if not already filed,
(ii)
original copies of tax invoices relating to the claim of input tax in respect of
the purchase of the goods;
(iii)
invoices showing the sale of the goods in the State or in the course of
inter-State trade and commerce along with the documents of dispatch and delivery
of the goods in other State(s);
(iv)
invoices showing the sale of the goods in the course of export out of the
territory of India along with the custom clearance certificates and shipping
documents; and
(v)
such other documents or evidence as the assessing authority may require for its
satisfaction relating to the payment of the input tax and the tax leviable on
the sale of the goods, wherever applicable.
(7)
The assessing authority shall, on receiving an application under sub-rule (6),
examine the same and pass an order within thirty days of receiving the
application either to allow the refund in full or in part or to disallow the
same for reasons to be communicated in writing and where the refund is allowed,
it shall issue refund in the manner specified in sub-rule (4) to the applicant.
The order passed under this sub-rule allowing the refund shall be provisional
and shall be subject to final order of assessment in the case.
(8)
Where the dealer is unable to identify the goods purchased with the goods sold,
or used in manufacturing and sold, it shall be presumed that the goods purchased
have been sold, or they have been used in manufacturing and sold, as the case
may be, in the chronological order in which they were acquired.
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