(1) Where in a proceeding for assessment of any dealer referred to in clause (a) of sub-section (4) of section 20 for any period, the dealer has been assessed, by an order, to tax at a higher rate on account of non-furnishing of declaration forms under the Central Sales Tax Act, 1956 (No. 74 of 1956), he shall have the option to forego his right to appeal and in lieu thereof, to apply, within thirty days from the date of service of such order, to the assessing authority to grant him further time, not exceeding twenty four calendar months, to furnish remaining declaration forms.

(2) No application for granting further time under sub-section (1) shall be entertained unless it is accompanied by satisfactory proof of payment of the amount admitted by the dealer along with an amount equal to ten percent of the disputed balance for every six calendar months or part thereof, of the further time applied for.

(3) On receipt of the application under sub-section (1), the assessing authority shall grant him further time as applied for and during the time granted, the recovery of the balance amount shall remain stayed:

Provided that the dealer may, before expiry of the time granted, apply to the assessing authority to grant him further time, not beyond twenty four calendar months in total, after complying with the requirement of sub-section (2).

(4) During the time so granted under sub-section (3), the dealer may apply, along with the remaining declaration forms, to the assessing authority to get his case reopened for reassessment. Such an application shall be entertained only once in the course of such proceeding.

(5) On receipt of an application along with the declaration forms under sub-section (4), the assessing authority shall reopen the case for the limited purpose of considering the remaining declaration forms since furnished by the dealer and pass an appropriate order in respect thereof, within a period of three calendar months from the date of receipt of the application under sub-section (4).

(6) Where the recovery of an amount assessed remains stayed under this section and on a decision under sub-section (5) the amount so stayed has been maintained in whole or in part, the dealer shall be liable to pay interest on such amount at the rate specified in sub-section (6) of section 24 for the period from the date on which such amount was due to be paid after the original order of assessment to the date of its payment.