(1) The Excise Commissioner or the Collector may : -
(a) accept from any person whose l icence, permit or pass is l iable to be cancelled or suspended under clauses (a) or (b) of Section 3L or who is reasonably believed to have committed an offence under Section 37, Section 38, Section 38-A (Except cases involving admixture of an intoxicant with any noxious drugs) or Section 39, a sum of money not exceeding ten thousand rupees in l ieu of such cancellation or suspension or by way of composit ion for such offence, as the case may be, or may impose as a penalty a sum not exceeding ten thousand rupees, and may in either case, order the confisc ation of articles which are seized; and 36
(b) in any case in which any property has been seized as l iable to confiscation under this Act, may at any t ime before an order of confiscation has been passed by a judicial Magistrate, release the same, on payment of the value thereof as estimated by the Excise Commissioner or the Collector.
(2) On the payment of such sum of money, or such value or both, as the case may be, to the „[Excise Commissioner or Collector , the accused person, if in custody shall be discharged, the property seized (if any) shal l be released, and no further proceeding shall be taken aga inst such person or property.
48-A. Special provision for the imposition of penalty by the Excise Commissioner or Collector.— Notwithstanding the l imit of pe nalty of Rupees ten thousand prescribed under sub -section (1) of Section 48, the Excise Commissioner or Collector in the event of any breach of contravention of the rules or conditions of l icence, may impose penalty to the extent provided in such rules or conditions of l icence under the provisions of this Act .