68. Refund. -

(1) A VAT dealer may, on quarterly basis claim refund of input tax by making an application to the appropriate assessing authority in Form VAT-26, appending thereto documents/information as maybe relevant for the claim.

(2) The assessing authority shall, on receipt of application under sub-rule (1), examine the same and pass order within thirty days either to allow the refund in full or in part or to disallow the same for reasons to be communicated in writing, and where the refund is allowed, it shall issue a refund voucher in Form VAT–27 in favor of the claimant. In the case of interest payment order on delayed refund, a refund voucher in Form VAT-27(1) shall be issued. An advice list shall, at the same time, be forwarded to the Treasury Officer concerned.

(3) When the claimant desires to adjust the amount of refund due to him against any amount payable by him, the assessing authority shall set off the amount to be refunded or any part thereof against the tax, if any, remaining payable by the claimant.

(4) Approval of Refund.- The following authorities shall be competent to allow refund arising from a single order, of the amount mentioned against each :

1. Assessing authority- Forty thousand rupees.

2. Assistant Commissioner, Zonal Charge- One lakh rupees.

3. Additional Commissioner- Five lakh rupees.

4. Commissioner- Any amount.

The lower authority/authorities shall submit the report of the case along with his/their recommendation(s) to the competent authority at the appropriate level at least thirty days before the time prescribed under sub-section (1) of section 50 of the Act lapses for issuing refund without interest, and the competent authority shall intimate its decision to the lower authority/authorities well in time.

(5) A register shall be maintained in Form VAT-22 wherein particulars of all applications for refund and the orders passed thereon shall be entered.