1994 (6) TMI 213 - HC - VAT and Sales Tax

Summary

Issues:
1. Challenge to order passed by the Board of Revenue under section 38 of the Kerala General Sales Tax Act, 1963.
2. Interpretation of section 47 of the Act regarding compounding of offences.
3. Validity of revision filed before the Deputy Commissioner against the order levying the compounding fee.

Analysis:
The petitioner, an assessee under the Kerala General Sales Tax Act, challenged the order passed by the Board of Revenue under section 38 of the Act. The petitioner had applied for compounding an offence under section 47 of the Act, which was allowed, and a compounding fee was fixed. The petitioner paid the fee but later realized a mistake in the order regarding unaccounted purchase of timber logs. The petitioner filed a revision before the third respondent, which was unsuccessful. A further revision was filed before the Board of Revenue, leading to the dismissal of the same as per exhibit P8 order.

Section 47 of the Act authorizes the composition of offences, allowing an assessing authority to accept a fee from a person who has committed an offence against the Act to compound the offence. The concept of compounding means agreeing not to prosecute an offence in exchange for compensation. Once the compounding fee is paid, the compounding process is complete, and the petitioner cannot dispute the order or claim further grievances. The petitioner's contention that there were mistakes in the order should have been raised before payment of the fee. The orders passed by the Deputy Commissioner and the Board of Revenue against the compounding fee are deemed void, and the original order passed by the second respondent stands.

In conclusion, the court held that the original petition challenging the orders is liable to be dismissed, and accordingly, the petition was dismissed.