(1) The claim of refund under clause (a) of sub-section (4) of section 58 shall be made through electronic mode in Form VAT-320A to the assessing authority within forty five days from the date of expiry of the period of twenty-four months from the end of the year to which the tax period relates.

(2) Where refund is claimed under sub-rule (1) the input tax credit shall be reduced by the amount of refund claimed, in the return filed or to be filed for the tax period in which the application for refund is filed.

(3) On receipt of application through electronic mode, the assessing authority shall refer the case for tax audit to determine the admissibility of the claim of refund or otherwise.

The audit report shall be submitted to the assessing authority within 30 days.

Provided that in the event of a tax audit already conducted u/s 41 of the Act, the tax period covered under such audit will be excluded from the purview of audit referred to in this sub-rule.

(4) Where the tax audit results in assessment the claim of refund shall be subject to result of such assessment.

Provided further that in the event of an assessment already made u/s 42 of the Act, the tax period covered under such assessment shall be excluded from the assessment proceeding referred to in this sub-rule.

(5) If there is no adverse finding in the audit report the assessing authority may sanction refund within 30 days from the date of receipt of audit report by the assessing authority and the amount sanctioned for refund shall be paid as per the procedure laid down in sub-rule (2) and (3) of rule 64".