(1) A registered dealer who claims refund of input tax rebate under clause (ii) of sub-section (4) of section 14 in his returns for a year, may make an application to the Commissioner for grant of provisional refund pending assessment, of the unadjusted input tax rebate after end of the year within sixty days.

(2) After making such enquiry as the Commissioner deems necessary and on furnishing an irrevocable Bank Guarantee, the Commissioner may grant provisional refund pending assessment, subject to the maximum of 75 percent of the refund claimed, within two calendar months from the date of receipt of the application.

(3) The assessment under section 20 of the year pertaining to the provisional refund shall be made as early as possible, not later than twelve calendar months from the date of receipt of the application.

(4) If, on assessment, the refund granted under sub-section (2) is found to be in excess of the refund determined, then such excess shall be recovered as if it is a tax due under this Act and the interest on such tax shall be charged at the rate as specified under sub-section (4) of section 18, for the period from the date of grant of provisional refund to the date of assessment.