Chapter II Settlement of Disputes

1. (1) Subject to other provisions of this Act, a dispute pending under the law may, on an application being made in this behalf by a party, be settled upon payment of the settlement amount as specified in column 3 of the Table appended herein below: Table

Explanation.— For the purposes of this sub-section, the expression “settlement amount” shall not include any payment towards any arrear of admitted tax and the party shall deposit the total amount of admitted tax.

1. (2) Where a party opting for settling a dispute, has deposited any amount in respect of the dispute, the said amount would be considered as payment towards settlement amount and the party will have to pay the difference amount only.
2. (3) Where a party opting for settlement of a dispute of tax, interest, penalty or fine has deposited any amount payable under any head through challan, and this amount is under the relevant Act in respect of the said dispute, then that amount shall be considered as payment for the settlement amount.
3. (4) No claim of refund of the party against the amount deposited in excess of the settlement amount for settlement of the dispute will be valid.
4. (5) Notwithstanding anything contained in any law for the time being in force but subject to the other provisions of this Act, any dispute in respect of which the amount specified in sub-section (1) has been deposited into Government Treasury, in the manner and within the time specified, shall be deemed to have been concluded and it shall not be continued by any authority or Court before which such dispute is pending.
5. (6) Upon an order of settlement of a dispute relating to –
   • (i) a revision petition pending before the Tribunal, or
   • (ii) a reference, or
   • (iii) a Writ Petition, or
   • (iv) a Special Leave Petition being passed under Section 5 of the Act, the said revision, reference, Writ Petition or Special Leave Petition shall be deemed to have been disposed of in terms of the aforesaid settlement.