Section 138. Compounding of offences.-
(1) Any offence under this Act may, either before or
after the institution of prosecution, be compounded by the Commissioner on
payment, by the person accused of the offence, to the Central Government or the
State Government, as the case be, of such compounding amount in such manner as
may be prescribed:
Provided that nothing contained in this section shall
apply to-
1[(a) a person who has been allowed to compound once
in respect of any of the offences specified in clauses (a) to (f), (h), (i) and
(l) of sub-section (1) of section 132;]
(b) 2[****];
3[(c) a person
who has been accused of committing an offence under clause (b) of sub-section
(1) of section 132;]
(d) a person who has been convicted for an offence
under this Act by a court;
(e) 4[****] and
(f) any other class of persons or offences as may be
prescribed:
Provided further that any compounding allowed under
the provisions of this section shall not affect the proceedings, if any,
instituted under any other law:
Provided also that compounding shall be allowed only
after making payment of tax, interest and penalty involved in such offences.
(2) The amount for compounding of offences under this
section shall be such as may be prescribed, subject to the minimum amount not
being less than 5[twenty-five per cent. of the tax involved and the maximum
amount not being more than one hundred per cent. of the tax involved].
(3) On payment of such compounding amount as may be
determined by the Commissioner, no further proceedings shall be initiated under
this Act against the accused person in respect of the same offence and any
criminal proceedings, if already initiated in respect of the said offence,
shall stand abated.
