(1)

The Settlement Commission may, if it is of opinion that any person who made an application for settlement under section 127-B has not co-operated with the Settlement Commission in the proceedings before it, send the case back to the proper officer who shall thereupon dispose of the case in accordance with the provisions of this Act as if no application under section 127-B had been made.

(2)

For the purpose of sub-section (1), the proper officer shall be entitled to use all the materials and other information produced by the assessee before the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it as if such materials, information, inquiry and evidence had been produced before such proper officer or held or recorded by him in the course of the proceedings before him.

(3)

For the purposes of the time limit under section 28 and for the purposes of interest under section 28-AA, in a case referred to in sub-section (1), the period commencing on and from the date of the application to the Settlement Commission under section 127-B and ending with the date of receipt by the officer of customs of the order of the Settlement Commission sending the case back to the officer of customs shall be excluded.