(1) When there is any unadjusted input tax credit exceeding tax liability whereby a dealer is entitled for refund of tax, the Appropriate Assessing Authority shall proceed to refund such amount to the person concerned by issue of refund voucher in Form VAT.XII and by crediting the amount to the bank account declared by the dealer in the manner specified in rule 30, within three months from the date of filing of the last quarterly return of the respective financial year or from the date of filing of an application claiming such refund by the dealer, whichever is later.

(2) Interest due, if any, on refunds shall be paid as provided in sub-section (2) of section 33 of the Act, alongwith the principal amount, in the manner as provided in rule 30.