Settlement of arrears and issue of certificate

Settlement of arrears and issue of certificate.—(1) The designated authority shall, on being satisfied with the payment of the amount determined under sub-section

1. (1) of section 10, by an order, settle the arrears of tax, surcharge, interest or penalty and issue a certificate of settlement in such form and manner as may be prescribed, and thereupon, the applicant shall be discharged from his liability to make payment of such arrears of tax, surcharge, interest or penalty. In respect of each application separate order and certificate of settlement shall be issued: Provided that in cases where a certificate of settlement is issued and the appeal filed by the Government is pending before any authority, tribunal or court, the Government shall withdraw the appeal forthwith.
2. (2) In cases where,—
   • (a) the arrears of tax or surcharge is rupees fifty thousand or less; or
   • (b) the amount payable under the scheme in relation to a specified order is less than the amount received by the Government by way of any remittance or deposit made by the applicant towards the demand in the specified order, or if any amount or its equivalent has been recovered as part of arrear recovery towards the demand in the specified order; the designated authority shall suo moto issue a certificate of settlement under sub-section
3. (1) or sub-section
4. (2) even if the application referred to in sub-section
5. (1) of section 9 is not submitted.
6. (3) The designated authority may, at any time within ninety days from the date of issue of the certificate and order under sub-section (1), modify the same by rectifying any error apparent on the face of the record: Provided that no such rectification adversely affecting the applicant shall be made without giving the applicant a reasonable opportunity to show cause against such rectification.
7. (4) In case the certificate is not issued under the scheme due to non-payment or short payment of amounts payable under the scheme, then any amount paid by the applicant as a part of the scheme shall be treated as a payment made towards the arrears in the specified order as per the provisions of the relevant Act.