(1) If a registered dealer has filed any return as required under this Act and the return shows any amount to be refundable to the dealer on account of Zero Rated Sales or in course of export out of the territory of India, then the dealer may apply in the manner and form prescribed to the prescribed authority for grant of provisional refund pending assessment, audit and investigation to establish the correctness of the claim and consequent assessment, if any.

(2) Provided further the Refund shall also be admissible to a registered dealer, who owns an industrial unit in the Software Technology Park, or who owns an Export Oriented Unit within the meaning of the Export and Import Policy as formulated under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), situated anywhere in Jharkhand a Special Economic Zone or Software Technology Park, the amount of tax realised or realizable from him by another registered dealer in respect of the purchases in Jharkhand-

(i) of goods for use directly in the manufacture of goods by him in such unit for sale by him in the course of export within the meaning of Section 5 of the Central Sales Tax Act, 1956 (74 of 1956).

(ii) of goods, being the containers or other packing material for packing of the goods manufactured in such unit.

(3) Subject to the provisions of sub-Section (1) or (2), the prescribed authority may require the dealer to furnish a Bank Guarantee or other security as may be prescribed for an amount equal to the amount of refund and on receipt of such guarantee or other security, the prescribed authority shall grant the dealer a provisional refund for the amount that may be determined as refundable.

(4) The prescribed authority may direct the assessment under Section 36 or 37 of such dealer in respect of the year containing the period covered by the said return to be taken up as early as practicable and adjust the grant of provisional refund against tax due, if any, as a result of that assessment.

(5) If, on assessment, the provisional refund granted under sub-Section (3) is found to be in excess, then the excess shall be recovered as if it is tax due from the dealer under this Act.

(6) Interest will be charged on such excess amount at the rate of two percent per month from the date of grant of provisional refund till the date of assessment.