Refund of Excess Payments

(1) The Commissioner shall refund to a person the amount of tax (if any) paid by such person in excess of the amount due from him. The refund may be either by cheque or at the option of the person, by deduction of such excess from the amount of tax due in respect of any other period: PROVIDED that the Commissioner shall first apply such excess towards the recovery of any amount due in respect of which a notice under sub-section (4) of section has been issued, and shall then refund the balance (if any). (2) Where any refund is due to any '[proprietor] according to the return furnished by him for any period, such refund may provisionally be adjusted by him against the tax due and payable as per the returns furnished under section 12 for any period: PROVIDED that the amount of tax due from, and payable by, the l [proprietor] on the date of such adjustment shall first be deducted from such refund before making adjustment.