37. Provisional refund under section 37. or 40
(1) Where a dealer has become entitled to provisional refund under section 37, he shall make an application in Form 306 to the Commercial Tax Officer to whom he has furnished such returns
. (2) Any dealer required to furnish the security other than Bank Guarantee under sub-section (2) of section 37 shall deposit Government Securities in the form of Stock Certificates or Government Promissory Notes of a market value not less than the sum determined by the Commissioner or National Savings Certificates, or Treasury Savings Deposit Certificates of a face value not less than the said sum, duly endorsed in favour of the Commissioner.
(3) Where a dealer is required to furnish a Bank Guarantee, such a dealer shall furnish the guarantee of a bank approved by the Commissioner,agreeing to pay the Commissioner on demand, a sum not exceeding the amount determined by the Commissioner.
(4) On receipt of the security or guarantee furnished in under sub-rule (2) or (3), the Commissioner may grant the provisional refund not exceeding the amount of refund so claimed or amount of security or guarantee furnished by the dealer.
(5) Notwithstanding anything contained in the proviso to sub-rule (8) of rule 15, the Commissioner may grant provisional refund for an amount not exceeding seventy-five per cent of the amount claimed in the return furnished by a dealer in the following circumstances :-
(i) Where the amount of tax credit remains unadjusted in the returns continuously in each month of the quarter in the case of a dealer who is a trader or a manufacturer of taxable goods and sells taxable goods in the State or who sales taxable goods in the course of inter-state trade and commerce despatches taxable goods to his branch or to his consigning agent outside the State.
(ii) Where the amount of tax credit remains unadjusted in the return furnished by a dealer who exports taxable goods out of the territory of India.
(iii) Where the refund under section-40 has been claimed in the return.
Provided that the Commissioner may grant provisional refund for an amount not exceeding ninety per cent of the amount claimed in the return furnished by the specified dealer, developer or co-developer of the Special Economic Zone in the circumstances specified above."
(6) The Commissioner may by way of public circular specify the documents to be submitted by the dealer for the purpose of provisional refund under sub-rule (5).
(7) The Commissioner may grant and decide by way of an order for a full or partial amount of refund in accordance with this rule.
(8) The amount referred to in sub-rule (5) may be refunded within a period of ninety days from the date of receipt of the application.
(9) In case where the difference between the amount of refund arrived at under sub-rule (5) and the amount of refund allowed after provisional assessment under section 32 exceeds twenty –five per cent of the amount of refund allowed under section 32, the dealer shall not be eligible for provisional refund under sub-rule (5) for a period as decided by the Commissione |