Settlement of arrears and issue of certificate

Settlement of arrears and issue of certificate.—

1. (1) The designated authority shall, on being satisfied with the payment of the amount determined under section 12, 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. A separate certificate of settlement and order shall be issued in respect of each application: 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) 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 certificate 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.
3. (3) In case the certificate is not issued under this scheme due to non-payment of amounts payable under the scheme, then any amount paid by the applicant as a part of this scheme shall be treated as a payment made towards the arrears in the specified order as per the provisions of the relevant Act.