Section 41(1) in Uttar Pradesh Value Added Tax Act, 2008
(1)Notwithstanding anything contained in section 40, in the case of a dealer, whose main business is to sell goods in the course of the export of the goods out of the territory of India, the assessing authority, upon receiving the return for a tax period and application for provisional refund along with the proof of export, pending audit and investigation to establish the correctness of the claim and consequent assessment, shall, allow provisional refund of the excess amount of input tax credit for such tax period on account of sale in the course of the export of the goods out of the territory of India, within thirty days from the date of receipt of such application:Provided that if any amount of tax, fee or penalty or any other amount either under this Act or under the Central Sales Tax Act, 1956 or under the erstwhile Act is due against such dealer the amount found refundable first shall be adjusted towards such amount of tax or fee or penalty, as the case may be, and excess, if any, shall be refunded to the dealer:Provided further that, before granting refund, the assessing authority may require the dealer to furnish security of amount equivalent to amount of refund to its satisfaction where,-(a)the dealer has been involved in tax evasion under this Act or erstwhile Act or under the Central Sales Tax Act 1956; or(b)the dealer has obstructed or prevented the officers empowered under this Act in performing any of his functions or duties assigned to him under this Act; or(c)the dealer has misused in any way the declaration or the certificate prescribed under this Act or under the Central Sales Tax Act, 1956 or under the erstwhile Act or under the Uttar Pradesh Tax on the Entry of Goods into Local Areas Act, 2007;or(d)the dealer is defaulter of the payment of tax on the sale or purchase of goods under this Act or under the Central Sales Tax Act, 1956 or under the erstwhile Act; or(e)the dealer has violated any provision of this Act resulting in the loss of revenue.Explanation. - For the purposes of this section,-(i)'main business of export? in relation to a dealer shall mean the dealer whose aggregate of turnover of sales in the course of export of goods outside the territory of India under sub-sections (1) and (3) of section 5 of the Central Sales Tax Act, 1956, for any tax period exceeds fifty percent of the aggregate of turnover of sale of all goods-(a)within the State;(b)in the course of export of goods out of the territory of India; and(c)in the course of inter-State trade or commerce.(ii)where any application is incomplete the date of completion of that application shall be deemed to be the date of application.
