Refusal of settlement of arrears

Refusal of settlement of arrears.—The designated authority on receipt of the application referred to in section 11 may, for reasons other than short payment of amounts as required under the scheme, refuse to settle the arrears of tax, surcharge, interest or penalty, in such form and manner as may be prescribed: Provided that no order under this section shall be passed without giving the applicant a reasonable opportunity to show cause against such refusal.