52A. Procedure for provisional refund

(1) Where a refund is being allowed provisionally under sub-section (1A) of section 39 on account of excess input tax credit, the provisions of sub-rule (4) of rule 52 shall not apply till 31st march following the close of financial year, for which refund is issued, or till the time the provisional refund exceeds one crore, whichever is earlier:
Provided that only those taxable persons shall be eligible to apply for provisional refund, who have deposited the statutory declaration forms as specified under sub-rule (4) of rule 52, for all the previous financial years or have deposited the tax due on account of his failure to submit the said forms, for the said previous years.

(2) The provisional refund shall not be allowed to the persons under sub-rule (1), who are found to be indulging in bogus input tax credit claims against which tax has not been deposited in the Government Treasury.

(3) The indeminity bond shall be in Form VAT-59, to be filled in a non-Judicial stamp paper of appropriate value.

(4) The indeminity bond shall be for an amount equivalent to the amount of refund, which has been arrived at after deducting any recovery due against the person, if any, and the amount not supported by statutory declaration forms as specified under sub-rile (4) of rule 52.

The amount of provisional refund and amount of indeminity bond shall be calculated as under:-

(a) Suppose the amount of refund claimed by the applicant is                                                      Rs.240
(b) Say less recovery due is                                                                                                        Rs.40
(c) Balance refund is                                                                                                                  Rs.200
(d) Suppose the amount of refund covered by the statutory declaration forms is                           Rs.100
(e) Balance                                                                                                                                Rs.100
(f) The indemnity Bond required is for                                                                                         Rs.100
(g) (suppose) 75% of the refund not supported by statutory declaration forms is                           Rss.75
(h) Total provisional refund would be (d) + (g), i.e.                                                                         Rs.175

(5) The designated officer shall maintain a register of provisional refunds (taxable person wise). This register shall be in form VAT-60.

(6) The provisions of sub-rules (1), (2), (3),(6), (7), (8), (10), (11) and (13) of rule 52, shall apply mutatis muntadis for the purposes of the provisional refund under this rule.