Section 38 in The Andaman and Nicobar Islands Value Added Tax Regulation, 2017
38. Refunds.
(1)Subject to the other provisions of this Regulation 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 Regulation, or under the Central Sales Tax Act, 1956.(3)Subject to the provisions of sub-section (4) and sub-section (5), 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,-(i)within one month after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is one month;(ii)within two months after the date on which the return was furnished or claim for the refund was made, if the tax period for the person claiming refund is a quarter; 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 58 advising him that an audit, investigation or inquiry into his business affairs shall be undertaken or sought additional information under section 59 of this Regulation, the amount shall 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 25 within fifteen days from the date on which the return was furnished or claim for the refund was made.(6)The Commissioner shall grant refund within fifteen days from the date the dealer furnishes the security to his satisfaction under sub-section (5).(7)For calculating the period prescribed in clause (a) of sub-section (3), the time taken to-(a)furnish the security under sub-section (5) to the satisfaction of the Commissioner; or(b)furnish the additional information sought under section 59; or(c)furnish returns under section 26 and section 27; or(d)furnish the declaration or certificate forms as required under the Central Sales Tax Act, 1956, shall be excluded.(8)Notwithstanding anything contained in this section, where-(a)a registered dealer has sold goods to an unregistered person;(b)the price charged for the goods includes an amount of tax payable under this Regulation; and(c)the dealer is seeking the refund of this amount or to apply this amount under clause (b) of sub-section (3),no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) unless the Commissioner is satisfied that the dealer has refunded the amount to the purchaser.(9)Where-(a)a registered dealer has sold goods to another registered dealer; and(b)the price charged for the goods expressly includes an amount of tax payable under this Regulation, the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) and the Commissioner may reassess the buyer to deny the amount of the corresponding tax credit claimed by such buyer, whether or not the seller refunds the amount to the buyer.(10)Where a registered dealer sells goods and the price charged for the goods is expressed not to include an amount of tax payable under this Regulation the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) without the seller being required to refund an amount to the purchaser.(11)Notwithstanding anything to the contrary contained in sub-section (3), no refund shall be allowed to a dealer who has not filed any return due under this Regulation.
