Compounding of offences

(1) The Taxation Officer may, either before or after the institution of proceeding for any offence punishable under clause (a) of section 13, accept from any person charged with such offence by way or composition thereof such sum of money for such period of time that the tax or additional tax has remained unpaid, as the State Government may, by notification, specify.

(2) On payment by such person of such sum together with the amount of tax or additional tax, if any, due, such person, if in custody, shall be set at liberty and if any proceedings in any criminal court have been instituted against such person in respect of the offence, the composition shall be deemed to amount to an acquittal and no further criminal proceedings shall be taken against such person in respect of such offence.