Refund of excess payment.

(1) The Taxation Officer shall refund to a holder, in such manner as may be prescribed, the amount of tax and penalty (if any) paid by such holder in excess of the amount due from him from time to time. (2) The refund under sub-section (1) may at the option of the holder be by deduction of such excess from the amount of tax and penalty (if any) due from him in respect of any other period: Provided that, the Taxation Officer shall before making any such refund first apply such excess towards the recovery of any amount due in respect of which a notice under section 11 has been served on the holder.