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Punjab Sales Tax on Services Act, 2012 QUESTION #2578
Question 1
Under section 51 of the Act, the Authority may compound an offence warranting prosecution. At what stage can compounding occur?
  • Only before institution of prosecution proceedings
  • Only after institution of prosecution proceedings
  • Either before OR after the institution of any proceedings for prosecution✔️
  • Only upon order of the Special Judge
Correct Answer Explanation
Section 51 explicitly states that the Authority may compound the offence and terminate proceedings EITHER BEFORE OR AFTER THE INSTITUTION OF ANY PROCEEDINGS for prosecution, provided the person pays the tax due along with default surcharge and penalty as determined.