28. Compounding of offences.

(1) Before initiating prosecution for offence committed under section 29 of the Act, the Commissioner shall issue a show-cause notice in Form E-12 to the person or dealer alleged to have committed or abetted the offence.

(2) The said person or dealer may exercise option to compound the offence and upon such exercise, the Commissioner shall determine the sum of money to be paid by way of compounding the offence along with the tax and/ or other tax recoverable under the Act.

(3) The commissioner shall communicate to the said person or dealer his determination in Form E13