9. Rebate on taxes-

(1)     Suppliers or traders of taxable goods or providers  of taxable service  are entitled to receive rebate on input taxes in each tax period against out put tax payable on goods supplied or service rendered by him, except in the following cases, namely:

(a)     Value added tax paid on inputs used in the production of exempted goods; (b)           Turnover Tax paid inputs procured from a Turnover Taxpayer;

(c)     supplementary duty, paid on inputs, used in the production of goods or rendering of service;

(d)     Value added tax paid on reusable package at any other time except for the first time;

(e)     the  value  added  tax,  paid  on  such  goods  and  services  as  are  related  to  the construction, balancing, modernization, replacement, expansion, renovation and repair of  any building or structure or establishment, purchase and repair of all kinds of furniture,  stationary, air conditioner, fan, lighting equipment, generator etc. architectural plan and design, though directly related to production of taxable goods or service;

(f)     various goods and services related to production or supply of taxable goods or rendering of taxable service, the value added tax paid in excess of the rate of value added tax on such goods and services set by Rules;

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(g)     Value added tax paid against expenditure on travel, entertainment, staff welfare and development activities;

(gg)  in the case of

(i)      value added tax paid on the inputs which are not included in the taxable value base of goods mentioned in sub section (2) of section 5;

(ii)     input  tax paid on inputs purchased by traders  who are mentioned in the second proviso of subsection (2) of section 5;

(h)     the value added tax paid on inputs purchased by the specified service provider as per proviso of subsection (4) of section 5;

(hh)  Input tax paid on inputs purchased by the trader mentioned in sub-section (4a) of

Section 5;

(i)      value  added  tax  paid  on  inputs  purchased  by  a  supplier  of  goods  or  service provider at Tariff Value fixed as per provision of sub-section (7) of section 5;

(j)      input tax mentioned in invoice or in Bill of Entry with a registration number of other than the registration number of the concern supplier or trader or renderer of service;

(k)     value added tax paid on the goods under the custody or possession or occupancy of other person;

(l)      VAT  paid  on  inputs  that  have  not  been  entered  into  the  Purchase  Register prescribed by Rules;

(m)   in case of inputs released furnishing Bank Guarantee, VAT involved with Bank Guarantee portion, until, the causes for which Bank Guarantee was furnished have not been finally settled; and

(n)     in case the purchase price of the inputs of goods or service stands BDT one lakh or  exceeds  this limit and if part or full payment of the same is made without banking or electronic medium, in that case the input tax paid on that purchase.

Provided that if the taxpayer, in spite of having the related documents of inputs in his possession, fails, for any reasonable ground, to enter the entire inputs in the same tax period, into his premise of production, delivery or service rendering, he may, subject to completion of  entry of such inputs into his premise, receive rebate on such inputs on any date during the next two tax periods.

(la) In the case of capital machinery, rebate on inputs tax shall be taken according to the procedure set by Rules.

(2)     Notwithstanding anything contained in section 37, where any person without having legal right to take inputs tax rebate in the cases mentioned in sub section (1), takes such rebate,  the  concerned  Officer  may,  direct  for  necessary  adjustment  in  the  Current Account by or in the return canceling the rebate taken.

(2a)  Notwithstanding  anything  contained  in  other  provisions  of  this  Act,  any  person aggrieved  by the order passed by the concerned Officer under sub-section  (2), may submit a written complaint against the said order to any higher VAT Officer of value added tax senior to the  concerned Officer; within fifteen days from the date of such