Refund and Adjustment.

50 (1) Where any amount has been deposited by a dealer or a person in any assessment year or has been paid as input tax and any amount is refundable to such dealer\ or person from such assessment year, the refund under the Ordinance shall be made after adjustment towards any amount outstanding against the dealer or the person concerned, for the same or any other assessment year under the Ordinance, under the Central Sales Tax Act, 1956 or under the Uttar Pradesh Trade Tax Act, 1948.

(2) Where any amount is to be refunded to a dealer or a person (hereinafter in this rule referred to as recipient), he will have to give name and address of local branch of any Bank authorized to accept the tax, fee, penalty or any amount payable under the Ordinance and his Bank account number in such local branch of the Bank to the assessing authority within a period of 10 days from date on which refund becomes due:

Provided that where the recipient has already= given name and address of local branch of a Bank and his Bank account number in such local branch of the Bank to the assessing authority, it shall not be necessary to give such details again.

(3) The assessing authority shall, before expiry of period of twenty one days from the date on which the refund has become due and after proper scrutiny of all relevant records and necessary verification, and after satisfying himself that the amount is refundable, submit a copy of refund order passed by him in Form XXXIII to his Drawing and Disbursing Officer. The Drawing and Disbursing Officer, within five days from the date of receipt of copy of the order, after preparing a bill, send such bill to the Treasury Officer concerned for issuing  crossed account payee cheque payable at the branch of State Bank of India or any other Bank conducting Treasury business:

Explanation: For the purpose of this rule, the date, on which refund has become due, shall be the date, following the date-

(a) on which order giving rise to refund has been passed by the assessing authority;

(b) on which order giving rise to refund has been received in the office of the assessing authority where such order has been passed by any Court or other authority; and

(c) on the last date prescribed for submission of tax return or the date on which tax return is submitted, whichever is later, where refund relates to excess amount of input tax credit and refund of such amount is admissible.

(4) In the bill, prepared by the Drawing and Disbursing Officer, name of Bank of the recipient, his account number and his name shall be mentioned.

(5) The Treasury Officer, within a period of four days from the receipt of the bill shall send to the service branch of the respective bank, a crossed account payee cheque, of the amount shown refundable in the bill, payable at the branch of State Bank of India or any other Bank conducting Treasury business.

(6) The cheque referred to in sub-rule (5) shall be issued by the Treasury Officer in favour of Bank name as mentioned in the aforesaid bill.

(7) The Service branch of the respective bank shall ensure for crediting the amount of refund in the account of respective recipient in the respective branches.

(8) Simultaneously with the dispatch of cheque to Bank in whose favour cheque has been issued, the Treasury Officer, shall send original copy advice in Form XXXIV to the branch of The State Bank of India or other Bank at which cheque is payable, and shall forward second copy of such advice to the Drawing and Disbursing Officer who has raised the bill.

(9) For the purpose of the Ordinance and these rules, the date, on which cheque relating to amount of refund is\ sent by the Treasury Officer to recipient's Bank, shall be deemed to be date of refund.

(10) Adjustment of any amount under the proviso to sub section (1) of section 40 shall be made by passing an order of adjustment in form XXXIII-A. The copy of the order shall be placed in relevant file of the dealer in which refund has been adjusted. A copy of the order so passed shall be served on the dealer or the person concerned

(11) Refunds allowed during the month shall be verified with the records of the treasury in the following month for which a statement showing the details of the bills raised and cheques issued shall be prepared and signed by the Drawing Disbursing Officer and sent to the Treasury Officer. The Treasury Officer shall verify the refunds and return the statement to Drawing and Disbursing Officer.

(12) The provisions of foregoing rules relating to refunds shall mutatis mutandis; apply to disbursement of amount under section 43.

(13) A dealer who has realized any amount referred to in sub-section (1) of section 43, shall deposit such amount along with the returns filed under rule 38. If he is not liable to file the returns, he shall deposit the entire amount within thirty days of the expiry of the relevant assessment year. The amount so realized shall be deposited in the manner specified in rule 11.

(14) The receipt of payment of amount to the dealer or a certificate from the dealer certifying the realization of amount from the claimant shall be filed along with the claim for refund under sub-section (3) of section 43.

(15) If the assessing authority, on the basis of evidence produced before it and after making such inquiry as it deems proper, is satisfied that the amount is refundable, it shall refund the amount to the claimant in the manner provided in sub-rules (1) to (9). Before rejecting a claim the assessing authority shall afford an opportunity of being heard to the claimant. The amount shall be refunded on furnishing an indemnity bond by the claimant in Form XXXV.

(16) If at any time after refund of the amount, the assessing authority is satisfied, for reasons to be recorded in writing, that the amount was not refundable or has become not refundable, he shall pass an order directing the claimant to deposit the amount refunded in excess in Government Treasury, within thirty days of the receipt of the order. If the claimant fails to deposit the amount within the time as aforesaid, the same shall be realized from him in accordance with the provisions of section 33. Provided that no order of deposit shall be made without affording the claimant reasonable opportunity of being heard.



Manner of refund to official or personnel of Diplomatic mission or consulate in India etc 


50A (1) Any official or personnel referred to in sub section (6) of section 40 of the Act may claim for the refund of the amount of tax in form XLIX after the end of the quarter ending on 30th June, 30th September, 31st December and 31st March but not before the 20th day of the succeeding 
month of the quarter. 

(2) The refund shall be made within 30 days from the date of receipt of completed application for refund and in case of incomplete application within 30 days from the date when shortcomings of application is fulfilled. 

(3) The provisions of rule 50 shall mutatis mutandis apply to the refund under this rule.