Compounding of offence under sales tax law is final on payment, leaving no appellate remedy for the offender.

An order compounding an offence under section 31 of the Karnataka Sales Tax Act becomes complete only when the agreed amount is actually paid, because payment reflects the offender's voluntary acceptance of the composition. Once composition is completed in this manner, the person who paid cannot be treated as an aggrieved person for the purpose of section 20, since the order is made to spare prosecution and is not adverse to him. The appellate remedy is therefore unavailable against a completed composition order, and the earlier view treating such orders as appealable was overruled.

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Issues: Whether an order made under section 31 of the Karnataka Sales Tax Act, 1957, compounding an offence can be challenged in appeal under section 20 of the Act by the person against whom the offence is compounded.

Analysis: Section 31 contemplates compounding of an offence on the basis of an offer made by the person concerned and acceptance by the prescribed authority within the statutory limits. The process of compounding is completed only when the agreed amount is actually paid, and payment signifies a voluntary election to compound the offence. Once the offence has been compounded in this manner, the person who made payment cannot be treated as an aggrieved person for the purpose of section 20. The order is not one adverse to him but one made to spare him prosecution, and therefore it is not appealable at his instance.

Conclusion: A person in respect of whom an order of compounding is made is not entitled to challenge that order by invoking section 20 of the Act.

Final Conclusion: The appellate remedy is unavailable against a completed composition of offence under section 31, and the earlier view treating such orders as appealable was overruled.

Ratio Decidendi: An order of compounding under the sales tax statute becomes final against the offender once the agreed composition amount is paid, because such payment shows voluntary acceptance of the composition and leaves the offender with no status as a person aggrieved for appellate purposes.

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