[1][(10) Refund of input tax.— (1) If the input tax paid by a
registered person on taxable purchases made during a tax period exceeds the
output tax on account of zero rated local supplies or export made during that
tax period, the excess amount of input tax shall be refunded to the registered
person not later than forty-five days of filing of refund claim in such manner
and subject to such conditions as the Board may, by notification in the
official Gazette specify:
Provided that the Board
may, subject to such conditions and restrictions as it may impose, by
notification in the official Gazette, prescribe the procedure for refund of
excess input tax against other taxable supplies;
Provided further that the
Board may, from such date and subject to such conditions and restrictions as it
may impose, by notification in the official Gazette, direct that refund of
input tax against exports shall be paid along with duty drawback at the rates
notified in the said notification.
(2) If
a registered person is liable to pay any tax, default surcharge or penalty
payable under any law administered by the Board, the refund of input tax shall
be made after adjustment of unpaid outstanding amount of tax or, as the case
may, default surcharge and penalty.
(3) Where
there is reason to believe that a person has claimed input tax credit or refund
which was not admissible to him, the proceedings against him shall be completed
within sixty days. For the purposes of enquiry or audit or investigation
regarding admissibility of the refund claim, the period of sixty days may be
extended up to one hundred and twenty days by an officer not below the rank of
an Additional Collector of Sales Tax and the Board may, for reasons to be
recorded in written, extend the aforesaid period which shall in no case exceed
nine months.]