Refund of excess payments

The Tax Officer shall refund to an operator in such manner as may be prescribed the amount of tax, penalty and interest (if any) paid by such operator in excess of the amount due from him. The refund may be either by cash payment or, at the option of the operator by deduction of such excess from the amount of tax, penalty and interest (if any) due in respect of any other period : Provided that, the Tax Officer shall first apply such excess towards the recovery of any amount due in respect of which notice under sub-section (1) of section 9 or, as the case may be, under sub-section (2) of section 9A has been served on the operator, and shall then refund the balance (if any).