The assessing authority shall refund to the assessee the
amount of tax, penalty, interest or other amount, if any, paid
by such assessee in excess of the amount due from him. The refund may be made either by cash or, at the option of
the assessee by deduction of such excess from the amount
of tax, penalty interest or other amount due in respect of any
other period:
Provided that, the assessing authority shall first apply such excess towards the recovery of any amount due in respect of which a notice under section 8 has been served, and shall then refund the balance, if any.
Provided that, the assessing authority shall first apply such excess towards the recovery of any amount due in respect of which a notice under section 8 has been served, and shall then refund the balance, if any.