(1) When the Assessing Authority is satisfied after such scrutiny of accounts and such inquiries as it considers necessary that the claim for refund is admissible, he shall determine the amount of refund due and shall, if the amount to be refunded :-

(i) does not exceed ten lakh rupees, record an order sanctioning the refund within 30 days of the receipt of the application in Form VAT-XLV;

(ii) exceeds ten lakh rupees but does not exceed one crore rupees, he shall submit the record of the case within a period of 07 days together with his recommendations to the Assistant Excise and Taxation Commissioner or Excise and Taxation Officer In-charge of the district, as the case may be, who shall pass the order within a period of 60 days thereof;

(iii) exceeds one crore rupees, he shall submit the record of the case within a period of 07 days from the date of receipt of application in Form VAT-XLV together with his recommendations to the Assistant Excise and Taxation Commissioner or the Excise and Taxation Officer In-charge of the District, as the case may be, who shall submit the same alongwith his recommendations within a period of 15 days to the Deputy Excise and Taxation Commissioner or officer In-charge of the zone(except flying squads) concerned, as the case may be, for orders who shall pass orders within a further period of 90 days;

and the Assessing Authority shall record the order sectioning the refund mentioned in clauses(ii) and (iii) only in accordance with the orders made by authorities specified in respective clause.

(2) When an order for the refund of any amount has been made, the officer-in-charge of the district -

(i) shall, if the dealer desires payment in cash issue to him a refund payment order in Form VAT-XXXIV for such amount as may remain after adjusting the recovery of any amount due from the dealer or other person;

(ii) if the dealer desires payment by adjustment against any amount subsequently payable by him the officer-in-charge of the district or the appropriate Assessing Authority shall issue refund adjustment order in Form VAT-XXXV authorising the dealer to deduct the sum to be refunded from the amount payable by him in respect of the period for which a return is to be filed subsequent to the issue of such refund adjustment order or from any amount determined to be payable by him subsequently. After allowing adjustment the officer-in-charge of the district or the Assessing Authority, as the case may be, shall cause a refund adjustment order to be cancelled.

(3) Where a refund payment order or a refund adjustment order is issued the authority issuing such order shall simultaneously record an order sanctioning the interest payable, if any, under section 19 on such refunds specifying therein, the amount of refund the payment of which was delayed, the period of delay for which such interest is payable and the amount of interest payable by the State Government and shall communicate the same to the dealer to whom the interest is payable and also to the Commissioner stating briefly the reasons for the delay in allowing the refund. Where an order for the payment of interest on delayed refund under this rule has been made, the sanctioning authority shall issue to the dealer interest payment order.

(4) where any refund accrues on account of erroneous payment made electronically through the departmental website wherein either the period or the head of account or where payment is credited into incorrect TIN or errors of similar nature, the dealer shall make the payment afresh electronically and thereafter apply for refund to the Assessing Authority concerned. The Assessing Authority shall after due verification of such claim, refund such erroneously made payment within 15 days of the date of application made by the dealer in this regard.

(5) the Commissioner shall select certain number of cases wherein refund have been allowed, for scrutiny either mechanically or through computers with a view to examine legality and propriety of such orders by a team of designated officers headed by Deputy Excise and Taxation Commissioner.