196. Refund arising out of rectification of the order determining interest

Where, upon rectification of the amount of interest under sub-section (1) of section 50, it appears to the appropriate assessing authority that the amount of interest is in excess of the amount that a dealer has already paid, such assessing authority shall serve notice in Form 33 upon such dealer specifying the amount of interest refundable to him and send along with such notice a Refund adjustment Order for such refundable amount or the said authority shall refund such amount in accordance with the second proviso to sub-rule (4) of rule 181.

Provided that in case there are arrears of tax, penalty or interest due from such dealer, in respect of any other period, the appropriate assessing authority shall adjust the amount of interest refundable to such dealer with such arrears and for the balance amount of interest refundable, if any, he shall send along with the notice in Form 33 a Refund Adjustment Order or the said authority shall refund the excess amount to the dealer in accordance with the second proviso to sub-rule (4) of rule 181.

Provided that, if the proceedings for recovery of the amount of interest have already been commenced before rectification, the said authority shall send a copy of the notice to the concerned Certificate Officer or Tax Recovery Officer.