(1) The Commissioner may, either before or after the institution of proceedings of prosecution for any offence punishable under section 85 or under any rules made under this Act, accept from any person charged with such offence, by way of composition,-

(a) where the offence consists of the failure to pay or the evasion of, any tax recoverable under the provisions of this Act, in addition to the tax so recoverable, a sum of money not exceeding double the amount of tax recoverable:

Provided that the Commissioner shall not accept any sum by way of composition which is less than one hundred percent of the amount of tax recoverable;

(b) in any other case, a sum of money not exceeding fifty thousand rupees subject to a minimum of rupees two thousand, in addition to the tax recoverable.

(2) The Commissioner shall not compound an offence under this section and pass an order for payment of the composition money unless the person concerned admits in writing that he has committed the offence.

(3) Where the Commissioner compounds an offence under this section, the order,-

(a) shall be in writing and specify the offence committed, the sum of money to be paid, the due date for the payment, and date by which the proof of such payment is to be produced;

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

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

(4) On payment of the full composition money, no further proceedings shall be taken against the accused person in respect of the same offence and any proceedings, if already taken, shall not be further proceeded with.