Section 40 in Arunachal Pradesh Goods Tax Act, 2005
40. Refunds.
(1)Subject to the other provisions of this section and the rules, 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.(2)Before making any refund, the Commissioner shall first apply such excess towards the recovery of any other amount due under this Act or under the Central Sales Tax Act, 1956 (74 of 1956).(3)Subject to sub-section (4), any amount remaining after the application referred to in sub-section (2) shall be at the election of the dealer, either -(a)refunded to the person within one month after the date on which the return was furnished or claim was made for the refund; or(b)carried forward to the next tax period as a tax credit in that period.(4)Where the Commissioner has issued a notice to the person under section 59 advising him that an audit, investigation or inquiry into his affairs will bounder taken, the amount must be carried forward to the next tax period as a tax credit in that period.(5)The Commissioner may, as a condition of the payment of a refund, demand security from the person pursuant to the powers conferred in section 27.(6)Notwithstanding anything contained in this section, where -(a)a registered dealer has sold goods to an unregistered person; and(b)the price charged for the goods includes an amount of tax payable under this Act;(c)the dealer is seeking the refund of this amount or to apply this amount under sub-section (3)(b); no amount shall be refunded to the dealer or may be applied by the dealer under sub-section (3Xb) unless the Commissioner is satisfied that the dealer has 'refunded the amount to the purchaser.(7)For the avoidance of doubt, where -(a)a registered dealer has sold goods to another registered dealer;or(b)the price charged for the goods is expressed not to include an amount of tax payable under this Act; the amount may be refunded to the seller or may be applied by the dealer under sub-section (3)(b) without the dealer being required to refund an amount to the purchaser.Explanation. - Where the goods have been sold to another registered dealer, the Commissioner may reassess the buyer to deny the amount of the excess tax credit claimed, consequent upon a refund of tax made to a seller. Where the seller has not sought to pass on the tax to the buyer, a refund may be made.
