(1)The Chief Executive Officer or any person authorised by him, by general or special order in this behalf, may, before or after the institution of the proceedings, compound an offence, made punishable by or under this Act other than an offence under Chapter XIV:
     Provided that no offence shall be compoundable which is committed by failure to comply with a notice, order or requisition issued by or on behalf of the Chief Executive Officer, unless and until the same has been complied with in so far as compliance is possible.
     (2)Where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded.