WHEREAS the Government of Gujarat is satisfied that circumstances exist which render it necessary to take immediate action to make rules and to dispense with the previous publication thereof under the proviso to sub-section (4) of section 98 of the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005);

NOW, THEREFORE, in exercise of the powers conferred by section 98 of the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005), the Government of Gujarat hereby makes the following rules further to amend the Gujarat Value Added Tax Rules, 2006, namely :-

Amendment

1. These rules may be called the Gujarat Value Added Tax (Amendment) Rules, 2007.

2. In the Gujarat Value Added Tax Rules, 2006 (hereinafter referred to as "the said rules"), in rule 15,-

(1) after sub-rule (7), the following sub-rule shall be inserted, namely :-

"(7A) In the case of a dealer who is a trader or a manufacturer and sells taxable goods in the State or who sells taxable goods in the course of inter-state trade or commerce or who dispatches taxable goods to his branch or to his consigning agent outside the State and where the amount of the tax credit allowed under section 11 remains unadjusted in the returns continuously in each month of the quarter, such unadjusted amount of tax credit may be refunded to such dealer before the period specified in sub-rule (6) or, as the case may be, sub-rule (7) :

Provided that the dealer claiming such refund shall have to prove to the satisfaction of the assessing authority that the purchases of the taxable goods on which such tax credit had been calculated, those goods have been disposed off for the purposes referred to in sub-section (3) of section 11 within the period by which refund under this sub-rule becomes admissible.";

(2) in sub-rule (8), after the words "The refund under this rule", the words and figures "or the refund under section 37 or 40" shall be substituted.

3. In the said rules, in rule 37,-

(1) in the heading and in sub-rule (1), for the word and figures "section 37", the words and figures "section 37 or 40" shall be substituted;

(2) after sub-rule (3), the following sub-rules shall be added, namely :-

"(4) On receipt of the security or guarantee furnished in under sub-rule (2) or (3), the Commissioner may grant the provisional refund not exceeding the amount of refund so claimed or amount of security or guarantee furnished by the dealer.

(5) Notwithstanding anything contained in the proviso to sub-rule (8) of rule 15, the Commissioner may grant provisional refund for an amount not exceeding seventy-five per cent. of the amount claimed in the return furnished by a dealer in the following circumstances :-

(i) Where the amount of tax credit remains unadjusted in the returns continuously in each month of the quarter in the case of a dealer who is a trader or a manufacturer of taxable goods and sells taxable goods in the State or who sales taxable goods in the course of inter-state trade and commerce or who dispatches taxable goods to his branch or to his consigning agent outside the State,

(ii) Where the amount of tax credit remains unadjusted in the return furnished by a dealer who exports taxable goods out of the territory of India,

(iii) Where the refund under section 40 has been claimed in the return.

(6) The Commissioner may by way of public circular specify the documents to be submitted by the dealer for the purpose of provisional refund under sub-rule (5).

(7) The Commissioner may grant and decide by way of an order for a full or partial amount of refund in accordance with this rule.

(8) The amount referred to in sub-rule (5) may be refunded within a period of fifteen days from the date of receipt of the application.

(9) In case where the difference between the amount of refund arrived at under sub-rule (5) and the amount of refund allowed after provisional assessment under section 32 exceeds twenty-five per cent. Of the amount of refund allowed under section 32, the dealer shall not be eligible for provisional refund under sub-rule (5) for a period as decided by the Commissioner.".

4. In the said rules, in FORM 306, for the word and figures "section 37" occurring at two places, the words and figures "section 37 or section 40" shall be substituted.