12. Interest

(1) If the refund amount due to a dealer is not received by him within the period specified in subsection (5) of section 42, he shall make an application to the assessing authority claiming the interest payable by the Government.

(2) (a) On receipt of the application, the assessing authority shall, after such enquiry as it may consider necessary for the purpose of verification of the eligibility of the dealer and the correctness of the claim made, issue a notice for the payment of the interest.

 (b) If on such enquiry, the assessing authority finds that the claim is not in order or that the amount of interest claimed is not admissible either in full or in part, it shall, after giving the dealer an opportunity of being heard, and for reasons to be recorded in writing, reject the claim or disallow such part of the claim.