(1) Application for settlement shall be submitted in Form VAT-56 in quadruplicate and separate applications shall be submitted by the applicant for separate orders.

(2) Every application submitted to the Tax Settlement Board shall be accompanied with the proof of deposit of fee which shall be one percent of the disputed outstanding amount of tax, penalty and interest subject to maximum of rupees ten thousand. Such fee shall be adjustable in the final amount of settlement but shall not be refundable in any case:

Provided that such application and fee shall not be required in the matters referred by any court/authority to the Tax Settlement Board.