Compounding of offences – (1) The Collector, or any Prohibition and

Excise Officer specially empowered in that behalf may accept from any person whose licence or permit is liable to be cancelled or suspended under clause (a) or clause (b) of sub-section (1) of section 31 or who is reasonably suspected of having committed an offence falling under clause (b),

1[clause (b), clause (c), or

clause (g) of section 34], clause (a), clause (e), clause (f), clause (g) or clause (h) of section 36, clause (b), clause (c) or clause (d) of section 37 or section 41

2[a

sum of money not exceeding a sum of money subject to such minima, as may

be prescribed and notified by the Government from time to time], in lieu of such cancellation or suspension or by way of compensation for the offence which may have been committed as the case may be; and in all cases in which any property has been seized is liable to confiscation under this Act, may release the same on payment of the value thereof as estimated by such officer : Provided that where the property so seized is a liquor manufactured in contravention of this Act, such liquor shall not be released but shall be disposed of in such manner as may be prescribed.

3[Provided further that in the case of an offence committed by the holder of a bar license for the first time, such offence may be compounded for a sum equal to two times of the license fee along with a warning. In the case of an offence committed for the second time by the Bar licensee, the bar licnese shall be cancelled.]

1. (2) On the payment by the person the sum of money or the value or both, as the case may be 4[in accordance with the provisions of sub-section (1)

or section 47-A], such person, if in custody shall be set at liberty, and all the

property seized may be released and no proceedings shall be instituted

5[or

continued] against such person in any criminal court. The acceptance of

compensation shall be deemed to amount to an acquittal and in no case any further proceedings be taken against such person or property with reference to same act.

6[47-A. Special powers of the Commissioner in regard to compounding of

offences - (1) Any person who is reasonably suspected of having committed an offence

7[falling under section 38] may apply to the Commissioner for compounding the offence before he is convicted.

1. (2) On receipt of such application, the Commissioner having regard to the circumstances of the case, may in his discretion order for compounding the offence on payment of a sum of money by way of compounding fee or compensation for the offence on such terms and conditions as he deems fit: Provided that the sum of money fixed as compounding fee or compensation by the Commissioner under this section shall not be less than five times but not more than ten times the duty involved and where no duty is . Substituted by the Act No.4 of 1994

involved, not less that rupees fifteen thousand but not more than rupees one lakh; Provided further that in all cases in which any property has been seized

as liable to confiscation under this Act, may be ordered by him to be released

on payment of the value thereof as estimated by him or by an officer authorized by him in this behalf; Provided also that where the property so seized is a liquor manufactured in contravention of this Act, such liquor shall not be released but shall be disposed of in such manner as may be prescribed.]