(1) Notwithstanding anything contained in clause (b) of sub-section (1), sub-section (2), of section 52, a certificate-debtor, referred to in sub-section (2) of section 52, shall be eligible to make an application for settlement of the amount, subject to the provisions of sub-section (8) and sub-section (9) of section 52, specified in the certificate referred to in sub-section (2) of section 52, the amount of interest recoverable under clause (a) of rule 5 of the rules in Schedule X and charges recoverable under clause (b) of rule 5 of the rules in Schedule X, hereinafter referred to as "the total amount recoverable" in respect of a certificate, where such total amount remains unrecovered, either in part or in full, in accordance with the provisions of clause (b) of sub-section (1) of section 52 on the day immediately preceding the day of coming into force of this section in respect of a certificate for which a notice under sub-section (5) of section 52 had been issued by the Tax Recovery Officer on or before the 31st day of March, 2004.

(2) Where a certificate-debtor as referred to in sub-section (1), has made an application in respect of matters and proceedings connected with a certificate referred to in sub-section (2) of section 52 before the West Bengal Taxation Tribunal referred to in clause (38) of section 2, or the High Court or the Supreme Court and such application is pending before such Tribunal or Court on the date of coming into force of this section, such certificate-debtor shall be eligible to make an application for settlement of the total amount recoverable in respect of a certificate, as referred to in sub-section (1), where such total amount remains unrecovered, either in part or in full, in accordance with the provision of clause (b) of sub-section (1) of section 52 on the day immediately preceding the day of coming into force of this section in respect of a certificate for which a notice under sub-section (5) of section 52 had been issued by the Tax Recovery Officer on or before the 31st day of March, 2004, subject to the condition that before making such application for settlement, the applicant has obtained the leave of the Tribunal or the High Court or the Supreme Court, as the case may be, for such settlement:

Provided that a certificate-debtor shall not be eligible to make an application for settlement of the total amount recoverable in respect of a certificate where the application in respect of matters and proceedings connected with such certificate pending before the Tribunal or the High Court or the Supreme Court, as the case may be, as referred to in this sub-section, has been heard in part, or has been heard but judgment has not been delivered, before the coming into force of this section, by the Tribunal or the High Court or the Supreme Court, as the case may be.

(3) An application for the purpose of sub-section (1) and sub-section (2) shall be made to the Tax Recovery Officer by whom or under whose order the recovery is being made or to be made, hereinafter referred to as the appropriate Tax Recovery Officer by the applicant in such form and in such manner, as may be prescribed, on or before the 31st day of March, 2011, or by such later date as the State Government may, by notification in the Official Gazette, specify.

(4) Every applicant shall, before making the application under sub-section (3) for settlement of the total amount recoverable in respect of a certificate as referred to in sub-section (1), pay the amount calculated at the rate specified in sub-section (5) into the Reserve Bank of India or to the appropriate Government Treasury in the manner as is specified in the Act and the rules made thereunder and the copy of the duly receipted challan showing the payment of the amount, payable for settlement of the total amount recoverable in respect of a certificate, shall be furnished to the appropriate Tax Recovery Officer along with the application made under sub-section (3)

(5) The amount payable by an applicant for settlement of the total amount recoverable in respect of a certificate as referred to in sub-section (1), shall be determined-

(a) at the rate of twenty-five per centum of the amount, subject to the provisions of sub-section (8), and sub-section (9), of section 52, specified in a certificate referred to in sub-section (2) of section 52 or the actual amount paid in respect of the amount specified in such certificate, whichever is higher; and

(b) at the rate of five per centum of the amount specified in a certificate referred to in sub-section (2) of section 52 towards the amount of interest recoverable under clause (a) of rule 5 of the rules in Schedule X till the date of making application under sub-section (3), subject to a maximum of rupees one lakh, or the actual amount paid towards the interest recoverable, whichever is higher; and

(c) at the rate of one hundred rupees as charges recoverable under clause (b) of rule 5 of the rules in Schedule X till the date of making the application under sub-section (3), or the actual amount paid towards charges recoverable, whichever is higher:

Provided that where the applicant has already paid, before coming into force of this sub-section, the amount as specified in the certificate referred to in sub-section (2) of section 52 in excess of or equal to the total amount specified in clause (a), clause (b) and clause (c) above, or where the applicant makes good the deficit amount to make it equal to the total amount specified in clause (a), clause (b) and clause (c) above, the same shall be accepted as payment made in full of "the total amount recoverable" as referred to in sub-section (1):

Provided further that the amount paid in excess of the total amount as referred to in the first proviso shall not be refundable to the applicant under any circumstances.

(6) The appropriate Tax Recovery Officer shall, within a period of one month following the month in which the application under sub-section (3) accompanied by the copy of the duly receipted challan showing payment of the amount payable for settlement is received by him, verify the correctness of the particulars and information furnished in the application and the amount paid on the basis of such particulars and information in the application and if he is satisfied that there is no discrepancy in the application and that the applicant has paid the amount payable for settlement in full, he shall issue a certificate of settlement to the applicant in such form as may be prescribed:

Provided that where upon verification made in accordance with the provision of this sub-section, the appropriate Tax Recovery Officer finds any discrepancy in the application or finds payment made by the applicant in short of the amount payable for settlement, he shall issue a notice to the applicant within one month following the month in which such application is received by him, asking him to rectify the discrepancy or to make payment of the amount which was paid in short by the applicant within thirty days from date of service of the said notice upon him and-

(a) where the applicant, after receipt of the notice, rectifies the discrepancy or makes the payment of the amount paid in short within the time referred to in this proviso, the appropriate Tax Recovery Officer shall issue a certificate of settlement to the applicant,

(b) where the applicant, after receipt of the notice, does not rectify the discrepancy or does not make the payment of the amount paid in short within the time referred to in this proviso, the appropriate Tax

Recovery Officer shall, after providing the .applicant a reasonable opportunity of being heard and for reasons to be recorded in writing, reject his application for settlement.

(7) The appropriate Tax Recovery Officer shall, for reasons to be recorded in writing; rectify or amend a certificate of settlement.

(8) No order adversely affecting the applicant shall be passed without allowing the applicant an opportunity of being heard.

(9) A certificate of settlement issued under sub-section (6), in respect of a certificate referred to in sub-section (2) of section 52, shall be conclusive as to the amount recoverable as referred to in sub-section (1), in respect of such certificate and it shall be deemed that the amount recoverable in respect of such certificate has been recovered in full from the applicant or the certificate-debtor, as the case may be and no amount is due to be payable in respect of such certificate by such person.

(10) No Tax Recovery Officer shall proceed to recover from the applicant for settlement the amount recoverable in respect of a certificate in accordance with the provisions of clause (b) of sub-section (1) of section 52, where in respect of such certificate an application has been made by the applicant under sub-section (3):

Provided that such authority shall proceed to recover from the applicant the amount recoverable in respect of such certificate in accordance with the provisions of clause (b) of sub-section (1) of section 52 where the application for settlement made under sub-section (3) has been rejected.

(11) Any proceedings initiated or continued in respect of a certificate, referred to in sub-section (2) of section 52, in accordance-with the provisions of clause (b) of sub-section (1) of section 52, or any application in respect of matters and proceeding connected with the certificate, as referred to in sub-section (2) of section 52, pending before the Tribunal or the High Court or Supreme Court, as the case may be, shall be deemed to have been withdrawn by the applicant from the date of making the application by the applicant under sub-section (3), where a certificate of settlement in respect of such certificate bas been issued.

(12) Notwithstanding anything contained in sub-section (7), where it appears to the appropriate Tax Recovery Officer that an applicant for settlement has obtained the benefit of settlement under this section by suppressing any material information or particulars or by furnishing any incorrect or false information or particulars, such authority may, for reasons to-be recorded in writing and after giving the applicant a reasonable opportunity of being heard, revoke the certificate of settlement issued under sub-section (6).

(13) Where a certificate of settlement is issued in respect of an applicant is revoked under sub-section (12),. the recovery. Of the amount specified in the certificate from the applicant shall be resumed in accordance with the provisions of section 52, section 53, section 54, section 55 and section 56 as if no settlement in accordance with the provisions of section 56A has ever been made and the amount paid in accordance with the provisions of sub-section (5) by the applicant for settlement under this section shall be treated to have been paid towards the amount recoverable from the certificate-debtor in accordance with the provisions of section 52, section 53, section 54, Section 55 and section 56.

(14) The appropriate Tax Recovery Officer shall keep the assessing authority, the appellate authority or the revisional authority under the Act, having jurisdiction over the applicant for settlement, informed, inter alia, of-

(a) making of an application by an applicant under sub-section (3), or

(b) passing of an order by the appropriate Tax Recovery Officer under sub-section (6), or

(c) revocation of any certificate of settlement under sub-section (12), in such form or manner, and within such time, as may be prescribed.