Refunds of Revenue

Define Refund of Revenue? 

Ans. All sanctions to refunds of revenue, shall be regulated in the manner as may be prescribed.

Procedure for refund of revenue. - 

 (1) The sanction to a refund of revenue may either be given on the bill itself or quoted therein and a certified copy of the same shall be attached to the bill in the latter case.

(2) Before a refund of revenue is made, the original demand or realization, as the case may be, shall be linked and a reference to the refund shall be recorded against the original entry in the vouchers or other documents so as to eliminate the chances of erroneous payment being made.

(3) Remissions of revenue allowed before collection shall be treated as reduction of demand(s).

(4) Refunds of revenues shall not be regarded as expenditure for purposes of grants or appropriation.

(5) In cases where revenue is credited to a wrong Head of Account or credited inadvertently, the authority competent to order refund of revenue shall, in such cases, be the authority to whom the original receipts actually pertain.

 

Question asked in HPFAS (1995)