(1) The authorised Excise Officer shall, after investigation of any offence committed under this Regulation, send his report to the Deputy Commissioner.
(2) The Deputy Commissioner shall, after scrutiny of the investigation report sent to him under sub-section (1), decide within such period as may be prescribed, and on the basis of the gravity of offence, that the matter be referred to
(a) a Court of ordinary jurisdiction in case of offences punishable with imprisonment for a term which may extend to three years; or
(b) a special Court in case of offences punishable with imprisonment for a term exceeding three years, where such Special Court is established, and in case no Special Court is established, such cases shall be tried by a Court of ordinary jurisdiction.
(3) The Deputy Commissioner shall communicate his decision to the concerned Excise Officer, who shall launch prosecution before a Court of ordinary jurisdiction or a Special Court, as the case may be.