(1)(a) The application for refund as referred in sub-section (2) of section 54 shall be made in form 37-A along with the original copies or retail invoices with one hundred and eighty days from the date of purchase.

Provided that an application for refund made after the said period may be admitted by the prescribed Authority, if he is satisfied that the person or international organisation has sufficient cause for not making the application for the said period:

(b) An application for refund shall be signed and verified by Director, Secretary or authorized person of the organization.

(c) The Prescribed authority may reject, any claim for refund if the claim filed appears to involve any mistake apparent on the record or appears to be incorrect or incomplete, based on any information available on the record, after giving the person or organization an opportunity to show cause in writing against such rejection.

(d) When the Prescribed authority is satisfied that the refund claimed is due he shall record an order sanctioning the refund.

(e) When the amount to be refunded is more than rupees three lakh the Prescribed Authority shall take prior approval of Deputy commissioner before sanctioning such refund. The Deputy Commissioner shall not approve the refund if the amount to be refunded exceeds rupees ten lakhs but forward such cases to the Commissioner for approval. Where the amount to be refunded is more than fifty lakhs, the Commissioner shall take prior approval of the government before sanctioning such refund.

(f) When an order for refund is passed refund voucher in Form 38-A shall be issued in favour of claimant and advice in Form 39A, shall, at the same time be forwarded to the Treasury officer concerned.

(g) Where an amount refundable under this sub-rule is not refunded to the dealer within the period of ninety days of claim of refund made in accordance with the provisions of clause (a) of this sub-rule, the refund voucher shall include the interest specified under Section 52 covering the period following the end of the said period to the day of the day of refund. The authority issuing such order shall simultaneously record an order sanctioning the interest payable, if any, on such refund, specifying therein, the amount of refund, the payment of which is 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 Commissioner stating briefly the reasons for the delay in allowing the refund:

Provided that in computing the period of ninety days, the following shall be excluded ;-

(i) any delay attributable to the conduct of the person to whom the refund is payable; and

(ii) the time during which any reasonable inquiry relating to the claim was initiated and completed.

(h) The Prescribed authority shall enter in a register in Form 40A Particulars of all refunds allowed in pursuance of such applications for refunds and of the order passed thereon."