Power to compound offences

(1) When any license, permit or pass is liable to be cancelled or suspended under clause (a) or clause (b) of section 29, sub-section (1) or when any person is reasonably suspected of having committed an offence under this Act other than an offence under section 62, the Excise Commissioner or a Collector, instead of enforcing such cancellation or suspension or instituting a prosecution in respect of such offence, may accept from the holder of such license, permit or pass or from such person a sum of money not exceeding Rs. 500, and thereupon such holder or person, it in custody, shall be discharged, and no further proceedings in respect of such liability or offence shall be taken against him:\nAnd if in any such case any property has been seized as liable to confiscation under this Act, the Excise Commissioner or the Collector may release the same on receiving payment of the value thereof as estimated by him, or of such sum smaller as he may think fit.\n(2) The Excise Commissioner or Collector may also, after the institution against any person of a prosecution in respect of any offence under this Act other than an offence under section 62, compound the offence on payment by such person of a sum of money not exceeding Rs. 500.