Section 38 - Refunds.Rule 34 - Delhi Value Added Tax Act, 2004

38. Refunds. Rule 34- (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 1 [ sub-section (4) and sub-section (5) ] of this section, any amount remaining after the application referred to in sub-section (2) of this section shall be at the election of the dealer, either - 2 [ (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 of this Act advising him that an audit, investigation or inquiry into his business affairs will be undertaken 3 [ or sought additional information under section 59 of this Act, ] 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 of this Act 4 [ within 10 [forty five days] from the date on which the return was furnished or claim for the refund was made. ] 5 [ (6) The Commissioner shall grant refund within fifteen days from the date the dealer furnishes the security to his satisfaction under sub-section (5). 6 [ (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 7 [ (c) furnish returns under section 26 and section 27; or (d) furnish the declaration or certificate forms as required under Central Sales Tax Act, 1956 , ] shall be excluded. ]] 8 [ (8) 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 clause (b) of sub-section (3) of this section; no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) of this section 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 Act, the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) of this section 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 Act the amount may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) of this section without the seller being required to refund an amount to the purchaser. 9 [ (11) Notwithstanding anything contained to the contrary in sub-section (3) of this section, no refund shall be allowed to a dealer who has not filed any return due under this Act. ] -------------------------------- Notes:- 1. S ubstituted vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005 , w.e.f. 01.04.2005. before it was read as:- sub-section (4) . 2. Substituted vide DVAT (Second Amendment) Act, 2005; Notification No.F.14(29)/LA/2005/333, Dated 16.11.2005 ., w.e.f. 16.11.2005, before it was read as:- (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 . 3. Inserted vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 4. Inserted vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 5. Inserted vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 6. Substituted vide DVAT (Second Amendment) Act, 2005; Notification No.F.14(29)/LA/2005/333, Dated 16.11.2005 ., w.e.f. 16.11.2005, before it was read as:- (7) For calculating the period of one month under clause (a) of sub-section (3), the time taken to furnish the security under sub-section (5) to the satisfaction of the Commissioner shall be excluded . 7. Substituted vide Notification No.F.14(6)/LA-2012/cons2law/61, Dated 15.06.2012 , w.e.f. 18.06.2012. before it was read as:- (c) furnish returns under section 26 and section 27 shall be excluded. 8. Re-numbered from sub-section (6) to (8) vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 9. Inserted vide DVAT (Amendment) Act, 2005; Notification No. F.14(6)/LA-2005/112, dated 28.03.2005, w.e.f. 01.04.2005. 10. Substituted vide F.14(6/LA-2015/cons2 law/112-126 - Dated 14-7-2015 , before it was read as, fifteen days