674.4.1. Where a person received before 13 May 1994 a taxable supply of a service in respect of which the person paid tax under section 16 at the rate of 8% or 4%, as the case may be, the supplier refunds or credits to the person after 12 May 1994 the consideration for the supply of the service, or a part thereof, the person is entitled to obtain from the supplier a refund of the tax paid in respect of the consideration or the part thereof so refunded or credited and the supplier shall refund the tax to the person.
This section does not apply in respect of a supply of a service in respect of which tax under section 16 was paid at the rate of 8% where it may reasonably be regarded that the purpose sought by the person having received the supply and the supplier having made it is to allow the person to receive a new supply, similar to the initial supply, in respect of which tax under section 16 is payable at the rate of 6.5%.