Maharashtra Value Added Tax Act (2005) : Chapter VIII : Set-Off, Refunds, Etc.
CHAPTER VIII SET-OFF, REFUNDS, ETC.
48. (1) The State Government may, by rules, provide that.—
(a) in such circumstances and subject to such conditions and
restrictions as may be specified in the rules, a set-off or refund of the whole
or any part of the tax,—
(1) paid under any earlier law in respect of any earlier sales or
purchases of goods treated as capital assets on the day immediately
preceding the appointed day or of goods which are held in stock on the
appointed day by a person who is a dealer liable to pay tax under this Act,
be granted to such dealer; or
(ii) (ii) paid in respect of any earlier sale or purchase of goods under this Act be granted to the purchasing dealer; or
(iii) paid under the Maharashtra Tax on Entry of Motor Vehicles into the Local Areas Act, 1987, be granted to the dealer purchasing or importing motor vehicles;
(iv) paid under the Maharashtra Tax on Entry of Goods into the Local Areas Act, 2002, be granted to the dealer;
(b) for the purpose of the levy of tax under any of the provisions of
this Act, the sale price (…) may in the case of any class of sales be reduced
to such extent, and in such manner, as may be specified in the rules.
(2) No set-off or refund as provided by any rules made under this Act shall
be granted to any dealer in respect of any purchase made from a registered
dealer after the appointed day, unless the claimant dealer produces a tax
invoice, containing a certificate that the registration certificate of the selling
dealer was in force on the date of sale by him and the due tax, if any,
payable on the sale has been paid or shall he paid and unless such
certificate is signed by the selling dealer or a person duly authorised by
him.
(3) Subject to the provisions contained in sub-section (4), where no tax has
been charged separately under any earlier law, the rate of tax applicable for
the purposes of calculating the amounts of set-off, or refund in respect of
any earlier sale or purchase of goods, or for the purposes of reduction of sale or purchase price for levy of tax, shall be the rate set-out against the goods in the relevant Schedule under any earlier law..
(4) Where, under any notification issued under this Act or as the case may
be, any earlier law, any sale or purchase of goods has been exempted from
the payment of whole of sales tax or purchase tax, then, for the purposes of
sub-section (3), the rate of tax applicable shall he nil; and where it is
exempted from payment of any part of sales tax (or purchase tax), the rate
of tax applicable shall be the rate at which the payment of tax is to be made
by virtue of such exemption.
(5) For the removal of doubt it is hereby declared that, in no case the
amount of set-off or refund on any purchase of goods shall exceed the
amount of tax in respect of the same goods, actually paid, if any, under this
Act or any earlier law, into the Government treasury except to the extent
where purchase tax is payable by the claimant dealer on the purchase of
the said goods effected by him:
Provided that, where tax levied or leviable under this Act or any earlier law is deferred or is deferrable under any Package Scheme of Incentives implemented by the State Government, then the tax shall he deemed to have been received in the Government Treasury for the purposes of this sub-section.
(6) Where at any time after the appointed day, a dealer becomes entitled
to a refund whether under any earlier law or under this Act, then such
refund shall first be applied against the amount payable. if any, under any
earlier law or this Act (….)and the balance amount, if any, shall be
refunded to the dealer.
49. Where any declared goods are sold by a dealer in the course of inter-
State trade or commerce and tax has been paid by him under the Central
Sales Tax Act, 1956, in respect of the sale of such goods in the course of
inter-State trade or commerce, and such dealer shows to the satisfaction of
the Commissioner that tax under this Act, or any earlier law has been paid
in respect of an earlier sale or purchase of such goods made in the State
after the 1st day of October 1958, then an amount equal to the tax so paid
shall be reimbursed to such dealer making such sale in the course of inter-
State trade or commerce, in such manner and subject to such conditions
as may be prescribed.
50. (1) Subject to the other provisions of this Act and the rules made
thereunder, the Commissioner shall refund to a person the amount of tax,
penalty and interest, if any, paid by such person in excess of the amount
due from him. The refund may be either by deduction of such excess from
the amount of tax, penalty, amount forfeited and interest due, if any, in
respect of any other period or in any other case, by cash payment:
Provided that, the Commissioner shall first apply such excess towards the recovery of any amount due in respect of which a notice under subsection (4) of section 32 has been issued, or, as the case may be. any amount which is due as per any return or revised return but not paid and shall then refund the balance, if any.
(2) Where any refund is due to any dealer according to the return or revised return furnished by him for any period, then subject to the other provisions of this Act including the provisions regarding provisional refunds such refund may provisionally be adjusted by him against the tax due and payable as per the returns or revised return furnished under section 20 for any subsequent period:
Provided that, the amount of tax or penalty, interest or sum forfeited or all of them due from, and payable by, the dealer on the date of such adjustment shall first be deducted from such refund before making the adjustment.
51. (1) If a registered dealer has filed any returns or revised returns as required by or under this Act, and such returns show any amount to be refundable to the said dealer, then the said dealer may apply in the prescribed form to the Commissioner for grant of a provisional refund pending assessment.
(2) The Commissioner may require the said dealer to furnish such Bank Guarantee for such period as may be prescribed . On receipt of such guarantee, the Commissioner shall subject to rules, grant the dealer a provisional refund of the amount claimed refundable as aforesaid within six months of the end of the year containing the period to which the return or revised return relates and the refund relating to all the periods contained in one year may be granted by a single order:
Provided that the refund relating to any period covered by a return shall be granted within three months of the end of the period to which the return relates if the dealer is,-
(a) is an exporter within the meaning of sub-section(1) of section5 of the
Central Sales Tax Act, 1956
(b) is an unit specified in the Explanation to sub-section (3) of section 8
© holds a certificate of Entitlement under any Package Scheme of
Incentives,
Provided further that where the dealer has obtained a registration certificate as provided under section 16 except on account of change of place of business to a different local area, then the provisional refund in
respect of the year containing the date of effect of the registration certificate shall be granted within six months of the end of the year succeeding the said year.
(d) a person or dealer specified to be eligible for refund in any notification issued under sub-section(1) of section 41.
(3) If it is found that the provisional refund granted is in excess of the
refund found due , then the excess shall be recovered as if it a tax due from
the dealer and on such excess, interest shall be leviable at the prescribed
rate per month or part thereof from the date of grant of the provisional
refund.”
(4) If the dealer is required to furnish any information before the grant
of provisional refund and the required information is not furnished in the
prescribed time, then, for the purposes of this Act, the period in which the
refund is to be granted shall commence from the first date of the month
following the month in which the required information is furnished.
(5) Provisional refund shall not be granted under this section if before
the grant of refund, a notice for assessment covering the period to which
the refund relates is issued or proceedings under sub-section (3) or (4) of
section 64 in respect of the period to which the refund relates are initiated .
52. Where under this Act, refund of any tax becomes due to a registered dealer, he shall, subject to rules, if any, be entitled to receive, in addition to the refund, simple interest at the prescribed rate on the amount of refund for the period commencing on the date next following the last date of the period to which the refund relates and ending on the date of the order sanctioning the refund or for a period of twenty four months, whichever is less. The interest shall be calculated on the amount of refund due to the registered dealer in respect of the said period after deducting therefrom the amount of penalty, sum forfeited and interest, if any, charged in respect of the said period and also the amount of refund, if any, adjusted towards any recovery under this Act or any earlier law or as the case may be, under the Central Sales Tax Act, 1956, If, as a result of any order passed under this Act, the amount of such refund is enhanced or reduced, as the case may be, such interest shall be enhanced or reduced accordingly. If the interest is reduced, then the amount granted in excess shall be recovered as if it is an amount payable under this Act.
Provided that interest under this section shall not be granted towards any provisional refund granted under section 51.
Explanation. —For the purposes of this section, where the refund of tax, whether in full or in part, includes any amount of refund on any payment of tax made after the date prescribed for making the last payment in
respect of the said period, then the interest, in so far as it relates to the refund arising from such payment, shall be calculated from the date of such payment to the date of such order.
53. (1) Where an amount required to be refunded by the Commissioner
to any person, by virtue of an order issued under this Act, is not so
refunded to him within ninety days of the date of the order, the
Commissioner shall pay such person simple interest at the prescribed rate
on the said amount from the date immediately following the expiry of the
period of ninety days to the date of the refund:
Provided that, where the amount becomes refundable by virtue of an order of the Tribunal or the High Court or the Supreme Court, the interest under the provisions of this section shall be payable from the date immediately following the expiry of period of ninety days from the date of receipt of the order of the Tribunal, the High Court or the Supreme Court, by the officer whose order forms the subject of the proceedings before the Tribunal, the High Court or the Supreme Court, to the date of refund. The applicant dealer or person may supply to the said officer a certified copy of such order and if the copy is so furnished, interest shall become payable after the expiry of period of ninety days from the date of such supply.
Explanation. —If the delay in granting the refund within the period of ninety days aforesaid is attributable to the said person, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable.
(2) Where any question arises as to the period to be excluded for the purposes of calculation of interest under the provisions of this section, such question shall be determined by the Commissioner, whose decision shall be final.
54. (1) Where an order giving rise to a refund is the subject-matter of an
appeal or further proceeding or where any other proceeding under this Act
is pending, and the authority competent to grant such refund is of the
opinion that the grant of the refund is likely to adversely affect the revenue,
such authority may, with the previous approval of the Commissioner,
withhold the refund till such time as the Commissioner may determine:
Provided that, the Commissioner shall accord his approval to the withholding of the refund only if he is of the opinion that on the conclusion of such appeal, further proceedings or other proceedings, if it becomes necessary to recover the amount of refund in full or in part, then it may not be otherwise practicable or possible so to do in any reasonable period of time:
Provided further that, no order withholding the refund shall be made after
the expiry of ninety days from the date of service of the order giving rise to the said refund.
(2) Where a refund is withheld under sub-section (1), the State Government shall pay interest in accordance with the provisions of section 53 on the amount of refund ultimately determined to be due to the person as a result of the appeal or further proceeding, or any other proceeding for the period from the date immediately following the expiry of ninety days from the date of service of the order referred to in stib-section (1) to the date of refund.