(1)When any licence, 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 64, 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 licence, permit or pass or from such person a sum of money not exceeding five hundred rupees, and thereupon such holder or person, if in custody, shall be discharged, and no further proceedings in respect of such liability or offence shall be taken against him;And 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 smaller sum as he may think fit.
