4. Procedure on receipt of an application under rule 3. – (1) On receipt of an application under rule 3, the compounding authority shall call for a report from the reporting authority with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application.

(2) Such report shall be furnished by the reporting authority within a period of one month or within such extended period as may be allowed by the compounding authority, from the date of receipt of communication from the compounding authority.

(3) The compounding authority after taking into account the contents of the said application may, by order, either allow the application indicating the compounding amount in terms of rule 5 and grant him immunity from prosecution in terms of rule 6 or reject such application :

Provided that application shall not be rejected unless an opportunity has been given to the applicant of being heard and the grounds of such rejection are mentioned in such order.

1[Provided further that application shall not be allowed unless the duty,  penalty, and interest liable to be paid have been paid for the case for which application has been made.]

(4) A copy of every order under sub-rule (3) shall be sent to the applicant.

(5) The applicant shall, within a period of thirty days from the date of receipt of an order under sub-rule (3) allowing the compounding of offences, pay the compounding amount, as ordered to be paid by the compounding authority and shall furnish the proof of such payment to the compounding authority.

(6)  The compounding amount once paid shall not be refunded except in cases where the Court rejects the grant of immunity from prosecution.

(7) The applicant cannot claim, as of right, that his offence shall be compounded.

Notes :

1. Has been inserted vide Notification No. 118/2008 Cus (NT) dated 12/11/2008