Composition of GST offence does not bar separate penalty for wilful non-disclosure of turnover.

Composition of an offence under sections 46 and 47 of the General Sales Tax Act does not bar a penalty under section 19(2) for wilful non-disclosure of assessable turnover. The provisions operate in different fields: sections 46 and 47 address criminal prosecution and composition of specified offences, while section 19(2) empowers the assessing authority to impose an executive penalty in assessment proceedings for escapement caused by wilful non-disclosure. The earlier composition plea therefore does not affect the separate penalty power under section 19(2), and the penalty remains valid.

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Issues: Whether composition of the offence under sections 46 and 47 of the General Sales Tax Act barred imposition of penalty under section 19(2) of the Act for wilful non-disclosure of assessable turnover.

Analysis: Section 46 contemplates criminal prosecution for specified offences and section 47 provides for composition of such offences. Section 19(2), by contrast, authorises an assessing authority to impose a penalty where escapement of turnover is due to wilful non-disclosure by the dealer. The two provisions operate in different fields, one relating to criminal liability and the other to an executive penalty in assessment proceedings. Therefore, composition of an offence under sections 46 and 47 does not affect or bar action under section 19(2).

Conclusion: The plea that the earlier composition of the offence precluded penalty under section 19(2) was rejected, and the penalty was held to be valid.

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