55A Conditions and restrictions for grant of refund.-

(1) Where a claimant dealer has filed an application for refund under sub-section (1) of section 51, in FORM 501 and if it is noticed by the Commissioner that,-

(a) the tax has not been paid on the earlier sales in respect of the transactions on which the dealer has claimed set-off or, as the case may be, refund, or

(b) the claimant dealer has not received the declarations or certificates in support of the sales or the dispatches otherwise than by way of sales as covered under the Central Sales Tax Act, 1956, then the Commissioner may, reduce the quantum of refund and grant only the balance amount of refund.

(2) The said reduction shall be equal to the aggregate of the quantum of set- off or, as the case may be, refund claimed on the purchase of the goods in respect of which tax has not been paid on the earlier sales and additional tax liability, if any, under the Central Sales Tax Act, 1956 on account of non-production of the said declarations or certificates.

[(3) For the purposes of Explanation to sub-clause (i) of clause (a) of sub-section(3) of section 51, the dealer shall be deemed to be an exporter only if, the turnover of export either during the previous year or during the period under refund application is not less than 3[twenty five] per cent. of his total turnover of  sales 4[or rupees hundred crore, whichever is less].]