(1) Notwithstanding anything contained in these rules, where a dealer files return electronically, and submits Bank Guarantee for a period of three years of an amount equal to the amount refundable to him, along with an undertaking to the effect that in case of failure of verification of deposit of amount of credit of input tax, he shall repay, forthwith, the amount of refund granted to him along with interest at such rate as may be notified under section 55 of the Act. The assessing authority shall grant provisional refund, not later than thirty days from the last date of filing of the return of the relevant quarter. The bank guarantee furnished by the dealer shall be released immediately after verification of the facts of such deposit by the assessing authority or the authorized officer.

(2) Notwithstanding anything contained in sub-rule (1), where a dealer files return electronically and has increase in his net annual tax liability by ten percent or more over the immediately preceding year, the assessing authority shall grant provisional refund of fifty percent of the refund granted to such dealer in the immediately preceding year, within thirty days from the last date of filing of the return of the relevant quarter, on an application filed by the dealer along with an undertaking to the effect that in case of failure of verification of deposit of amount of credit of input tax credit he shall repay, forthwith, the amount of refund granted to him along with interest.

(3) The assessing authority shall verify the claim of input tax credit in case of grant of provisional refunds under this section within six months of the grant of such refund.