(1) The designated authority, on being satisfied that the applicant has paid the amount determined under section 6, shall issue a certificate of settlement 15 [in Form III]hereto, to the applicant and thereupon, such applicant shall be discharged from his liability to make payment of the balance amount of arrears of tax, interest and penalty to which he was liable before settlement.
(2) The designated authority may, by Order, for reasons to be recorded in writing, reject the application of the applicant on the ground that no question of settlement arises or rectify or amend the certificate of settlement issued under sub-section (1):
Provided that no order adversely affecting the applicant shall be passed without giving him a reasonable opportunity of being heard:
Provided further that an appeal against the order of the designated authority shall lie to the Commissioner and such appeal shall be made within a period of sixty days from the date of such order.