(1) Notwithstanding anything contained in this Act, or in any judgment, decree or order of any court, tribunal or appellate authority, an assessee which is a Public sector undertakings excluding oil marketing companies and which is in arrears of tax or any other amount due under this Act or the Central Sales Tax Act, 1956 (Central Act 74 of 1956) relating to the period ending on 31st March, 2005, may opt for settling the arrears by availing reduction at the following rates:-

(a) a complete reduction of the interest on the tax amount and for the amount of penalty and interest thereon ; and

(b) in the case of Public sector undertakings excluding oil marketing companies or Co-operative Societies which are running in profit, reduction in fifty per cent of the principal amount ; and

(c) in the case of Public sector undertakings excluding oil marketing companies or Co-operative Societies which are running at loss, reduction in seventy-five per cent of the principal amount:

Provided that Public sector undertakings excluding oil marketing companies or Co-operative Societies, the landed properties of which are likely to be sold in execution of any judgment, decree or order of any court, tribunal or other authority shall not be eligible to opt under this scheme.

(2) A Public sector undertakings excluding oil marketing companies which wishes to opt for payment of arrears under sub-section (1) shall make an application to the assessing authority in the prescribed form before 31st July, 2014.

(3) On receipt of an application under sub-section (2), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lumpsum or in three equal instalments on or before 31st December, 2014:

Provided that notwithstanding anything contained in this section, where,

(a) after the last date for filing option, the Government have notified a further date under sub-section (3); and

(b) if an applicant had filed his option earlier and remitted at least one instalment, but had failed to remit the balance amount due and his earlier option was revoked by the assessing authority,

on furnishing of a fresh option, the amount paid under the earlier option shall be treated as the amount paid under the subsequent option.

(4) If the assessee commits any default in payment of the instalments, the reduction allowed under sub-section (1) is liable to be revoked.

(5) No action under sub-section (4) shall be taken without giving the assessee, an opportunity of being heard.

(6) If the amount settled under this provision has been the subjectmatter of an appeal or revision, such appeal or revision may be continued and if the final orders of such appeal or revision results in the reduction of tax payable under this Act, the amount so reduced shall be refunded. But if, as the result of such appeal or revision, the tax payable under this Act is enhanced, the assessee shall pay such enhanced amount with interest thereon, in accordance with the provisions of this Act.