Adjustments and refunds

Rule 127. (1) Where any dealer, in whose case the input tax deductible relating to goods exported outside the territory of India exceeds the output tax payable by him as specified under sub-section (5) of section 10 on the basis of the return submitted for any month during a year or where any dealer, in whose case the input tax deductible exceeds the output tax payable by him on the basis of any final return submitted under sub-section (4) of section 27, seeks adjustment of such amount or any other such amount during the year, towards tax payable by him under the Act or the Central Sales Tax Act, 1956, or where he is found to be in arrear of tax for any tax period under this Act, the Karnataka Sales Tax Act, 1957, Central Sales Tax Act, 1956 or Karnataka Tax on Entry of Goods Act, 1979 or Karnataka Special Tax on Entry of Certain Goods Act, 2004, the jurisdictional Local VAT officer or VAT sub-officer shall make the adjustment sought , if found correct, or shall make his own adjustment towards the arrear of any tax found and shall issue a notice in Form  VAT 250, showing details of any adjustment made.

(2) Where in the case of any dealer other than a dealer claiming deduction of input tax relating to goods exported outside the territory of India during any month in a year, the input tax deductible, exceeds the output tax payable by him as specified under sub-section (5) of section 10 or the tax payable under the Central Sales Tax Act, 1956 on the basis of the return submitted for any month in a year, the jurisdictional Local VAT officer or VAT sub-officer shall adjust, such amount towards the arrear of any tax for any tax period under this Act, the Karnataka Sales Tax Act, 1957, Central Sales Tax Act, 1956 or Karnataka Tax on Entry of Goods Act, 1979 or Karnataka Special Tax on Entry of Certain Goods Act, 2004, and shall issue a notice in Form VAT 250, showing details of any adjustment made.