Refunds

Refunds (1) The assessing authority shall, in the manner prescribed, refund to a dealer any amount of tax, fees or other dues paid in excess of the amount due from him under this Act:
PROVIDED that the amount found to be refundable shall first be adjusted towards the tax or any other amount outstanding against the dealer under this Act or under the Central Sales Tax Act, 1956, and only the balance, if any, shall be refunded.
(2) If the amount found to be refundable in accordance with sub-section (1) is not refunded as aforesaid within three months from the date of order of refund passed by the assessing authority or, as the case may be, from the date of receipt by him of the order of refund, if such order is passed by any other competent authority or court the dealer shall be entitled to simple interest on such amount at the rate of [twelve per cent] per annum from the date of such order or, as the case may be, the date of receipt of such order of refund passed by the assessing authority to the date of refund:
PROVIDED that for calculation of the interest in respect of any period after the 26th day of May, 1975, the sub-section shall have effect as if for the words six months the words three months were substituted and for the words six per cent the words twelve per cent were substituted.
(3) Notwithstanding any judgement, decree or order of any court or authority no refund.shall be allowed of any tax or fee due under this Act on the turnover of sales or purchases or both, as the case may be, admitted by the dealer in the returns filed by him or at any stage in any proceedings under this Act.
Explanation I: The date of refund shall be deemed to be the date on which intimation regarding preparation of the refund voucher is sent to the dealer in the manner prescribed.
Explanation II: The expression refund includes any adjustment under the proviso to sub-section (1).
[(4) Notwithstanding anything contained in sub-sections (1), (2) and (3) where the tax has been paid by a dealer on purchase of certain goods and the value of goods manufactured out of such goods is inclusive of such tax and the State Government remits the tax liability on such purchases retrospectively, the dealer shall not be entitled to refund of tax paid on purchases of such goods unless he proves to the satisfaction of the assessing authority that he has not passed on the liability of such tax to any third party as a result of any sale or otherwise.]