(1) Notwithstanding anything contained in this Act or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority, any assessee who is in arrears of surcharge or any other amount due under this Act relating to the period up to and including 30th June, 2017, may opt for settling the arrears by availing a complete reduction of the penalty amount, interest on the surcharge amount and on the penalty amount, on payment of,-

(i) seventy per cent of the principal amount of the surcharge in arrears; or

(ii) sixty per cent of the principal amount of the surcharge in arrears, if the amount is paid in lump sum within thirty days of receipt of intimation of the assessing authority referred to in sub-section (7).

(2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, (15 of 1968) reduction of arrears under sub-section (1) shall be applicable to those cases in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under sub-section (1) and where the amount is settled under sub-section (1) the assessing authorities shall withdraw the revenue recovery proceedings against such assessees which will then be binding on the revenue authorities and such assessees shall not be liable for payment of any collection charges.

(3) The assessee shall withdraw all the cases pending before any appellate or revisional authority, tribunal or courts for opting for settling the arrears under this section and shall file a declaration to this effect along with the option mentioned under sub-section (5).

(4) All arrears including surcharge, interest and penalties pertaining to a year shall be settled together under this section.

(5) An assessee who intends to opt for payment of arrears under sub-section (1) shall submit an option to the assessing authority on or before 31st August, 2022:

Provided that with respect to demands generated after 31st August, 2022, the option may be filed within thirty days on receipt of the assessment order and in such cases the final payment of surcharge and other amounts due as per this section shall be completed on or before 31st December, 2022.

(6) The arrears for the purpose of settlement under this section shall be calculated as on the date of submission of option.

(7) On receipt of the option under sub-section (5), the assessing authority shall determine the amount of surcharge and other amounts due from the assessee under sub-section (1) and shall intimate the same to the assessee, and thereupon the assessee shall remit the amount in installments or lump sum, as the case may be, on or before 31st December, 2022:

Provided that the first installment thereof, for those who opt for payment as specified in clause (i) of sub-section (1) of this section, shall not be less than twenty per cent of the amount determined in this section and such amount shall be paid within thirty days of receipt of the said intimation and the balance amount is to be paid in installments, subject to a maximum of four installments.

(8) Notwithstanding anything contained in this Act, if an assessee who opts to settle his arrears under sub-section (1) has remitted or deposited any amount towards the arrears under this Act after the service of demand notice, such amounts shall be given credit as surcharge before reckoning the arrears to be settled under sub-section (6) and the assessee shall furnish the proof of payments made in this regard:

Provided that any amount paid towards penalty or its interest shall not be given credit.

(9) Notwithstanding anything contained in this Act, or in any judgment, decree or order of any court, tribunal or appellate authority, there shall not be any refund or any adjustment subsequently for the amount settled under this scheme, under any circumstances.

(10) The form and manner of submission of option, intimation and payment, shall be as may be specified by the Commissioner.

(11) Cases involved in Appeals filed by an officer empowered by the Government before the Appellate Authorities under the Kerala General Sales Tax Act, 1963 (15 of 1963), Kerala Value Added Tax Act, 2003 (30 of 2004) and Kerala Agricultural Income Tax Act, 1991 (15 of 1991) pending final orders as on the date of option, can also be opted to be settled under this scheme, reckoning the demand in the original assessment order.

(12) Assessee who opted to settle the arrears under this section during previous years, but had failed to make payments may also opt to settle the arrears under this section, and the amounts, if any, paid earlier shall be given credit as surcharge before reckoning the arrears to be settled under sub-section (6) and the assessee shall furnish the proof of payments made in this regard, however no refunds shall be allowed.

(12A) Where any amount has been paid in part under this section during the year 2020-21, the amount so paid shall be appropriated towards the earliest arrear, and the balance amount, if any, shall be appropriated towards the arrears of subsequent years. In the case where such amount is to be given credit towards the arrears opted to be settled under this section, the amount shall be given credit as surcharge before reckoning the arrears to be settled under sub-section (6)."

Explanation:- For the purpose of this section, "earliest airear" means the outstanding dues related to the oldest year among the arrears pending against an assessee.

(13) Commissioner may, within a period of four years from the date of full payment of arrears as per the intimation under sub-section (7), suo motu review any of the cases settled under this section in the interest of revenue.