30. Manner of making refund in special circumstances.—

(1) Provisional refund in case of export.—

(a) Where a registered dealer claims refund in the return furnished for a tax period on account of the sales made in the course of export out of the territory of India and if the dealer exercises his option for provisional sanction of refund under section 51 pending audit, investigation and assessment, he shall make an application in Form-42 to the Prescribed Authority within thirty days of the filing of such return:

Provided that an application for refund made after thirty days may be admitted by the Prescribed Authority, if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

The Prescribed Authority shall ordinarily, within thirty days of the receipt of the application, grant refund provisionally, if such dealer furnishes a bank guarantee or other security duly pledged in favour of the Prescribed Authority

The delay attributable to the conduct of the person to whom the refund is payable shall be excluded in computing the period of thirty days.

(b) The Prescribed Authority may pass an order of final refund where provisional refund has been granted after audit and assessment as a result of such audit, if any, is completed and the excess refund allowed, if any, may be recovered as if it is a tax payable under this Act and release the Bank guarantee furnished by the dealer at the time of grant of provisional refund in the manner prescribed:

Provided that the Bank guarantee furnished shall be forfeited if the dealer had preferred an incorrect claim of refund against which payment has been made or fails to produce evidence in support of the claim of refund or the refund claim is reduced by any reason whatsoever and the dealer fails to pay the excess refund allowed, to the extent and manner prescribed.

(2) Refund in case of export.—

(a) Where any dealer claims refund in the return furnished for a tax period on account of sales made in the course of export out of the territory of India, he shall make an application in Form-43 to the jurisdictional Prescribed Authority, within 30 days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the Prescribed Authority, if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The application filed under this sub-rule shall be accompanied by tax invoices, copies of the purchase order placed by the foreign buyer with the dealer, the agreement with the foreign buyer, the invoice issued to the foreign purchaser, transport documentation i.e. Bill of Lading, Airway Bill, or a similar document, letter of credit, evidence of payment made by the foreign buyer, the customs clearance certificate, Form 'H' and such other evidences as may be required to establish the claim of refund.

(c) The Prescribed Authority, on receipt of the application for refund along with the required documents, shall refer the case for tax audit to determine the admissibility or otherwise of the claim of refund. The tax audit shall be completed within one month, as far as practically possible.

(d) If, on assessment as a result of audit, the claim of refund if found to be correct and is supported by the required evidences, and after receipt of report of such findings, the concerned Prescribed Authority shall sanction the refund claimed within ninety days:

Provided that if the delay in completing the audit under this clause is due to non-cooperation of the dealer or non-production of evidence as may be required to be furnished in support of the claim of refund or any other lapse on the part of the dealer, the period of such delay shall be excluded while computing the period of limitation as specified above, and such period shall not be reckoned for grant of interest, if any, admissible the Act.

(3) Refund in case of sales to a unit located in a Special Economic Zone (SEZ) or to an Export Oriented Unit (EOU).—

(a) Where any dealer claims refund in the return furnished for a tax period on account of sales made to a unit located in a Special Economic Zone (SEZ) or to an Export Oriented Unit (EOU), he shall make an application in Form-43 to the jurisdictional Prescribed Authority, within 30 days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the Prescribed Authority, if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The excess input tax credit in any tax period, for which refund is claimed under this sub-rule, shall be carried over to six consecutive tax periods, following that tax period, for adjustment against output tax and the amount found refundable at the end of such tax periods, shall be refunded in accordance with the provisions of clause (c) and (d) of sub rule (2).

(c) The application for refund furnished under clause (a) of this sub-rule shall be accompanied by the copy of the tax invoice, certificate of the competent authority showing the name and address of the dealer and the SEZ, under which it is established and the entitlement of the dealer to purchase goods free of tax covered under such tax invoice and such other evidence, as may be required to establish the claim of refund.