(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 may be, of such compounding amount in such manner, as may be prescribed:

Provided that nothing contained in this section shall apply to,-

(a) (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) Omitted w.e.f 01-10-2023;

(c) a person who has been accused of committingan 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) Omitted w.e.f 01-10-2023; 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 further 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 twenty-five percent of the tax involved and the maximum amount not being more than one hundred percent 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.