Section 13(2) in The Kerala Value Added Tax Act, 2003
(2)Where input tax has been paid in respect of the purchase of any goods including capital goods, except those goods coming under the Fourth Schedule, and such goods are either,-(i)sold in the course of export; or(ii)sold in the course of inter-State trade or commerce; or(iii)sent to outside the State otherwise than by way of sale in the course of inter- State trade; or(iv)(a)used or consumed in the manufacture of goods, other than those falling under the Fourth Schedule, or used as containers or as packing materials for such goods and such manufactured goods are sold in the course of export; or(b)used or consumed in the manufacture of taxable goods or used as containers or as packing materials of such goods manufactured and such manufactured goods are sent outside the State either by way of sale in the course of inter- state trade or commerce or otherwise; or(v)used as Capital goods; the input tax paid on such goods shall be refunded to the person making such sales in the course of export or in the course of inter- State trade or commerce or sending such goods to outside the State, as the case may be, in such manner and subject to such conditions as may be prescribed:Provided that the dealer claiming such refund shall not claim input tax credit on such purchases for any return period:Provided further that where the goods are sent to outside the State otherwise than by way of sale in the course of inter- State trade or export or where the sale in the course of interstate trade is exempted from tax, the refund under this section shall be limited to the amount of input tax paid in excess of four per cent on the purchase turnover of such goods sent outside the State, re-sold or used in the manufacture, as the case may be:Provided also that in the case of capital goods, the refund of input tax will be allowed in such installments as may be prescribed.Explanation. - For the removal of doubt it is hereby clarified that where input tax is paid on the purchase of Duty Entitlement Pass Book or any similar license for the import of any goods and goods so imported are used, consumed or disposed of in the manner specified in this sub-section, the input tax paid on the purchase of such Duty Entitlement Pass Book or any similar license shall for the purpose of this section and section 11, be deemed to be the input tax paid on the goods imported.
