1[51.  Grant of refunds:- 

        (1) Where a registered dealer has in any return, fresh return or revised return shown any amount to be refundable and has not undertaken to adjust such amount against the amount due as per any 2[***] return in accordance with section 50, the Commissioner shall, on an application made by the dealer and subject to rules, and the other provisions of this Act, grant refund of such amount to the said dealer.

                   3[Provided that, the Commissioner may, subject to such conditions and restrictions as may be prescribed, reduce the refund and grant only part of the refund claimed in such application].

        (2) 4[(a) The registered dealer may, after the end of the year to which the return, fresh return or revised return relates, make an application in the prescribed form for grant of refund of the amount claimed refundable as aforesaid. The Commissioner may, 5[on receipt of the application] call for such additional information from the dealer, as he may think necessary. The refunds relating to all the periods contained in one year may be granted by a single order.]

               6[(b) **********]

                       Provided that, the said dealer may apply in the prescribed form to the Commissioner at any time after the end of the year to which the refund relates for grant of the said refund and the Commissioner may subject to rules including rules relating to bank guarantees grant such refund:

     7[* * *]

              (3) (a) Notwithstanding anything contained in sub-section (2), if a dealer is,—

(i)   an exporter within the meaning of sub-section (1) or sub-section (3) of section 5 of the Central Sales Tax Act, 1956; or

(ii)  a unit specified in the Explanation to sub-section (3) of section 8 ; or

(iii)            a holder of a Certificate of Entitlement under any Package Scheme of Incentives except the New Package Scheme of Incentives for 8[Tourism Projects 1999; or], a holder of an identification certificate issued to mega unil covered under the package scheme of incentives- 2001, Package scheme of incentives- 2007or the case may be Package scheme of incentives- 2013.

  9[10[(iv) **********]

(v) the Canteen Stores Department or the Indian Naval Canteen Services or,]

then he may apply in the prescribed form to the Commissioner after filing the return for grant of refund relating to the period covered by a return, fresh return or revised return.

(vi) selling the goods in the course of inter-state trade or commerce and turnover of the said inter-state sales in immediate previous year exceeds fifty percent of his total turnover of sales for that year.

               11[Explanation.- For the purposes of sub-clause (i), the expression “exporter” shall means a registered dealer whose turnover of exports during such period as may be prescribed, is not less than such percentage of the total turnover of his sales as may be prescribed in this behalf.]

               12[(b) The Commissioner, on receipt of the said application, may require the dealer to furnish such bank guarantee for such amounts from such banks, for such periods and to such authorities as may be prescribed.]

          13[14[(4) Save as otherwise provided in this section, the Commissioner shall grant the refund under this section within eighteen months from the end of the month containing the date of the receipt of the application for refund:

                                Provided that, where a dealer has filed an application for refund under this section on or before the 31^st March 2011, then, notwithstanding anything contained in sub-section (4) as it existed prior to the date of commencement of the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2011, the commissioner shall,-

(a)  in respect of the periods ending on or before the 31^st March 2010, grant the refund to such dealer on or before the 30^th September 2011, and

(b)  in respect of the periods beginning with the 1^st April 2010 and ending on the 31^st March 2011, grant the refund to such dealer on or before the 30^th June 2012.]

             (5) Notwithstanding anything contained in this section, if the dealer has furnished a bank guarantee for such amount, from such bank, for such period and to such authority as may be prescribed, the Commissioner shall grant the refund due under sub-section (2) or (3), within one month of the furnishing of the bank guarantee, irrespective of whether the additional information has been furnished or not.]

           (6)  (a) If before the grant of refund under this section, a notice for assessment covering the period to which the return relates is issued or if any proceedings under sub-section (3) or sub-section (4) of section 64 are initiated in respect of the period to which the return relates, then,—

(i) if the dealer has not furnished a bank guarantee then no refund under this section shall be granted; and

(ii) if the dealer has furnished a bank guarantee then an amount equal to the guaranteed amount shall be refunded.

     (b)    If it is found as a result of any order passed under this Act that the refund granted under this section is in excess of the refund, if any, determined as per the said order, then the excess amount shall be recovered as if it is an amount of tax due from the dealer and the dealer shall be liable to pay simple interest at the prescribed rate per month or part thereof from the date of the grant of refund.

          (7) No refund under this section shall be granted unless an application as provided is made and no application under this section shall be entertained unless it is made within 15[eighteen months] from the end of the year containing the period to which the return relates.]

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       1. Section 51 was substituted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.  Prior to substituted the “Section 51” was read as under :-

      “51.  Provisional refunds :- (1) If a registered dealer has filed any returns or revised returns as required by or under this Act, and such returns show any amount to be refundable to the said dealer, then the said dealer may apply in the prescribed form to the Commissioner for grant of a provisional refund pending assessment.

*[(2)  The Commissioner may, require the said dealer to furnish such bank guarantee for such amounts and for such period as may be prescribed. On receipt of such guarantee, the Commissioner shall, subject to rules, grant the dealer a provisional refund of the amount claimed refundable as aforesaid within six months of the end of the year containing the period to which the return or revised return relates and the refund relating to all the periods contained in one year may be granted by a single order:

      Provided that, the refund relating to any period covered by a return shall be granted within three months of the end of the period to which the return relates, if the dealer,—

(a) is an exporter within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956 (74 of 1956);

(b) is a unit specified in the Explanation to sub-section (3) of section 8;

(c) holds a certificate of Entitlement under any Package Scheme of Incentives;

(d) is a person or dealer specified to be eligible for refund in any notification issued under sub-section (1) of section 41:

                  Provided further that, where the dealer has obtained a registration certificate as provided under section 16 except on account of change of place of business to different local area, then the provisional refund in respect of the year containing the date of effect of the certificate of registration shall be granted within six months of the end of the year succeeding the said year.

*(3)  If it is found that the provisional refund granted is in excess of the refund found due, then the excess shall be recovered as if it is a tax due from the dealer and on such excess, interest shall be leviable at the prescribed rate per month or part thereof from the date of grant of the provisional refund.

*(4)  If the dealer is required to furnish any information before the grant of provisional refund and the required information is not furnished in the prescribed time, then, for the purposes of this Act, the period in which the refund is to be granted shall commence from the first date of the month following the month in which the required information is furnished.

*(5) Provisional refund shall not be granted under this section to any dealer if before the grant of refund, a notice for assessment covering the period to which the refund relates is issued or proceedings under sub-section (3) or (4) of section 64 in respect of the period to which the refund relates are initiated.]

              *  Sub-sections (2), (3), (4) & (5) were substituted for “sub-sections (2) & (3)” by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

          2.           The word “subsequent” was deleted by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.

         3. This “Proviso” was added by Mah. Act No.XII of 2010 dt.29.04.2010 w.e.f. 1st May, 2010

        4. The “clause (a)” was substituted by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007. Prior to substituted the “clause (a)” was read as under :-

                     “(a) The Commissioner shall, grant the dealer refund of the amount claimed refundable as aforesaid within six months of the end of the year to which the return, fresh return or revised return relates and the refund relating to all the periods  contained in one year may be granted by a single order :

                               Provided that, where the return, fresh return or, as the case may be, revised return is filed after the date prescribed for filing the last return of the said year, then the period of six months shall be counted from the date of filing of the said return, fresh return or revised return.

        5. These words were substituted for the words “within one month of the receipt of the application” by Mah. Act No. XV of 2011 dt.21^st April 2011 w.e.f.1^st May 2011.

       6.  clause (b) shall be deleted by Mah. Act No. XV of 2011 dt. 21^st April 2011 w.e.f.1^st May 2011. Earlier this clause read as: “(b) Notwithstanding anything contained in clause (a), where a dealer has obtained a registration certificate as provided under this Act, then the refund in respect of the returns, fresh returns or revised returns in respect of the year containing the date of effect of registration shall be granted within six months of the end of the year succeeding the said year:”

          7. The “Second Proviso” was deleted by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007. s.16(2)(b). Prior to deleted the “Second Proviso” was read as under :-

                        “Provided further that, where the return, fresh return or, as the case may be, revised return is filed   at any time after the date prescribed for filing the last return of the said year, then the refund shall be granted within eighteen months of the date of filing of the return, fresh return or revised return.”

          8.           These words & figures were subtituted for the words & figures “Tourism Projects, 1999” by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007. s.16(3)(i).

          9.           These “clauses (iv) & (v)” were added by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.

        10.This clause were deleted by by Mah. Act No. XV of 2011 dt. 21^st April 2011 w.e.f.1^st May 2011. Earlier this clause read as: “(iv) selling any goods in the course of inter-State trade or commerce; or”

       11 The explanation shall be inserted by by Mah. Act No. XV of 2011 dt.21^st April 2011 w.e.f.1^st May 2011.

      12  Clause (b) was substituted by by Mah. Act No.XV of 2011 dt. 21^st April 2011 w.e.f.1^st May 2011. Earlier this clause read as: “(b) The Commissioner, within one month of the receipt of the said application,—

                  (i) may require the dealer to furnish such bank guarantees for such amounts from such banks, for such periods and to such authorities as may be prescribed; and

                (ii) may call for such additional information as he may think necessary.”

       13.These “sub-sections (4) & (5)” were substituted by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No. VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.  Prior to substituted the “sub-sections (4) & (5)” was read as under :-

                      “(4)  Where in any period covered by a return, the dealer has made a sale in the course of inter-State trade or commerce and in the return, fresh return or revised return filed in respect of the said period, he has shown any amount to be refundable, then he may apply in the prescribed form to the Commissioner, after filing the return as may be due, for grant of refund relating to the period covered by the return, fresh return or revised return. He shall furnish a bank guarantee on or after making the said application for such amount, from such banks, for such periods and to such authorities as may be prescribed.            

                        (5)  The Commissioner shall, within one month of the receipt of bank guarantee, where it is required to be furnished under sub-section (2), (3) or (4), grant the dealer a refund of the amount claimed as refundable in the return.      Where the Commissioner has not required the dealer to furnish a bank guarantee or in any case, the Commissioner has called for additional information, then the Commissioner shall grant the dealer a refund of the amount found due. The refund shall be granted within a period of three months from the date of receipt of the application or, as the case may be, the date of receipt of the additional information whichever is later.”

      14.  This sub-section(4) substituted by by Mah. Act No.XV of 2011 dt.21^st April 2011 w.e.f.1^st April 2011. Earlier this sub-section read as:

            “(4) The Commissioner shall grant the refund under this section within three months of the receipt of application or receipt of additional information whichever is later. If the additional information is not furnished, then the refund shall be granted within six months of the receipt of the application.”

      15.  These words were substituted for the words “three years” by Mah. Act No. XV of 2011 dt.21^st April 2011 w.e.f.1^st May  2011.

50.  Refund of excess payment:-

        (1) Subject to the other provisions of this Act and the rules made thereunder, 1[the Commissioner shall, by order refund] to a person the amount of 3[tax, 2[penalty, interest, security deposit deposited under section 16] and fee except when the fee is paid by way of court-fee stamp,] if any, paid by such person in excess of the amount due from him. The refund may be either by deduction of such excess from the amount of tax, penalty, amount forfeited and interest due, if any, in respect of any other period or in any other case, by cash payment:

                           Provided that, the Commissioner shall first apply such excess towards the recovery of any amount due in respect of which a notice under sub-section (4) of section 32 has been issued, or, as the case may be, any amount which is due as per any return or revised return but not paid and shall then refund the balance, if any.

     4[(2) If a registered dealer has filed any returns, fresh returns or revised returns in respect of any period contained in any year and any amount is refundable to the said dealer according to the return, fresh return or revised return, then subject to rules, the dealer may adjust such refund against the amount due as per any return, fresh return or revised return for any 5[* * *] period contained in the said year, filed under this Act or the Central Sales Tax Act, 1956 or the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002.]

            Provided that, for the period commencing on or after the 1st April, 2012 a dealer whose refund claim in a year is rupees five lakh or less may, carry forward such refund to the return or revised return for immediate succeeding year to which such refund relates.

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        1. These words were substituted for the words “the Commissioner shall refund” by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.

        2.   These words were substituted for the words “penalty and interest,” and shall be deemed to have been substituted w.e.f. 1-4-2005 by Mah. Act No. XXV of 2007, dt. 6.8.2007.   

      3.  These words were substituted for the words “ tax ,penalty, interest”  by Mah. Act No.XV of 2011 dt.21^st April 2011 w.e.f.1^st May 2011.

      4.  Sub-section (2) was substituted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.

  (2)  Where any refund is due to any dealer according to the return or revised return furnished by him for any period, then subject to the other provisions of this Act including the provisions regarding provisional refunds such refund may provisionally be adjusted by him against the tax due and payable as per the returns or revised return furnished under section 20 for any subsequent period :

                 Provided that, the amount of tax or penalty, interest or sum forfeited or all of them due from, and payable by, the dealer on the date of such adjustment shall first be deducted from such refund before making the adjustment.

        5. The word “subsequent” was deleted by Mah. Act No. XXV of 2007, dt. 6.8.2007 w.e.f. 15.8.2007 as per Notification No.         VAT.1507/CR-57/Taxation-1, dt. 10.8.2007.