(1)No amount representing input tax shall be refundable except in accordance with the provisions of sub-rules (2) and (3).(2)Subject to the provisions of sub-rule (4), any amount representing input tax relating to the goods which have been sold in the course of export out of the territory of India, or which have been used in manufacturing and the manufactured goods have been sold in the course of export out of the territory of India, shall be refundable in full to the exporting dealer.(3)Subject to the provisions of sub-rule (4), any amount representing input tax relating to the goods which or the goods manufactured from which have been sold in the State or in the course of inter-State trade and commerce shall be refundable to the extent the input tax exceeds the tax calculated on sales on account of difference in rates of tax at which the input tax has been calculated and the rates at which the tax on sales has been calculated.Illustration. - 1. Input tax in respect of goods purchased by a VAT dealer D is Rs.10,000/-, D sells these goods in the course of export of goods out of the territory of India. D's liability to pay tax on account of sales made in the State and in the course of inter-State trade and commerce totals to Rs.8,000/-. D is entitled to a refund of Rs.2,000/-.
