37A. Power to arrest and prosecute.--
(1) An officer of Sales Tax, not below the rank of an Assistant Collector of Sales Tax or any other officer of equal rank authorised by the Board in this behalf, who on the basis of material evidence has reason to believe that any person has committed a tax fraud [1][or any offence warranting prosecution under this Act] [2][*********], may cause arrest of such person.
(2) All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).
(3) (***)
(4) Notwithstanding anything contained in sub-section (1) to subsection (3) or any other provision of this Act, where any person has committed a tax fraud [3][or any offence warranting prosecution under this Act], the Collector may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due alongwith such default surcharge and penalty as is determined under the provisions of this Act.
(5) Where the person suspected of tax fraud [4][or any offence warranting prosecution under this Act] is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing the tax fraud [5][or any offence warranting prosecution under this Act] shall be liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Act.