Section 5. Adjustment of any payment made under Relevant Act and settlement of arrears of tax, interest, penalty or late fee, if any.

(1) Notwithstanding anything contained in the Relevant Act or under this Act,- (a) any payment made in respect of the statutory order either in the appeal or otherwise, on or before the 31st March 2019, shall first be adjusted towards the amount of tax in the ratio of undisputed tax and disputed tax and thereafter towards the interest and the balance amount remaining unadjusted, shall then be adjusted towards the penalty and the late fee, sequentially; (b) after adjustment of amount as specified in clause (a), the amount remaining outstanding, if any, as on the 1st April 2019, shall only be considered for the settlement and the requisite amount payable towards the settlement of aforesaid outstanding amount and the waiver, therefor, shall be as determined in accordance with Annexure-A or Annexure-B : Provided that, the ratio for adjustment under clause (a) shall be determined by the designated authority. (2) The provisions of foregoing clauses shall be applicable mutatis mutandis to the return dues or, as the case may be, as per the recommendations made in respect of tax, interest or late fee by the auditor in the audit report. (3) No arrears of tax, interest, penalty or late fee, if any, shall be settled under the Act, in case the statutory orders are made or returns or the revised returns are filed after the 16th August 2019.