(1) If the competent authority refuses to grant or renew any licence under section 4, it shall order the refund of the fees paid thereof.
(2) If no industry or manufacturing process connected with the making of beedi or cigar is carried on in an industrial premises at any time during the period of validity of the license in respect thereof, the licence may, within a period of three months from the last date of the financial year for which the license was granted or renewed, apply to the competent authority for the refund of the fee paid by him for such licence and the competent authority shall, after making such enquiry as he May deem necessary and after satisfying himself about the correctness of the statements made in the application, order refund of such fee.