(A) Compounding of Offence.-

(1) Where any person has committed an offence under this Act, the Commissioner may, on admission by such person in writing and upon his option for compounding at any time prior to the commencement of the court proceedings relating thereto, compound such offence and order the person to pay such sum of money as specified by the Commissioner, not exceeding the amount of the fine specified for the offence in addition to the tax due.

(2) Where the Commissioner compounds an offence under this section, the order referred to in sub-section (1) -

(a) shall be in writing and specify the offence committed, the sum of money to be paid, and the due date for the payment; and

(b) shall be served on the person who committed the offence; and

(c) shall be final and not subject to any appeal.

(3) When the Commissioner compounds an offence under this section, the person concerned shall not be liable for prosecution in respect of such offence or for penalty.

(4) No prosecution for an offence under this Act shall be instituted wherein penalty as per the provisions of this Act has been imposed;

(B) Cognizance of Offence.-

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or the rules made thereunder shall be cognizable and bailable.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, no Court inferior to that of a Magistrate of first class shall try any offence under this Act or under the rules made thereunder, without previous sanction of the Commissioner.