Compounding fee accepted without protest cannot later be challenged as excessive under the statutory composition scheme.

An assessee who voluntarily applied for compounding an offence under the Kerala General Sales Tax Act, accepted the compounding order, and paid the fixed amount without protest could not later dispute the fee as excessive. The court noted that the composition scheme under section 47 operates on the terms accepted in the application, and the assessee, having sought compounding for a sum up to Rs. 50,000 and acted on the order, could not insist that the authority should have fixed a lower amount by reference to another statutory ceiling. The challenge to the compounding order was therefore not maintainable.

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Issues: Whether an assessee who offered to compound an offence for a specified amount, accepted the compounding order, and paid the amount without demur can later challenge the quantum of compounding fee on the ground that a lower statutory maximum applied.

Analysis: The proceedings arose from inspection findings showing serious irregularities in the assessee's accounts, leading to action under section 46 of the Kerala General Sales Tax Act, 1963. The assessee himself invoked section 47 of the Act and offered to compound the offence for a sum not exceeding Rs. 50,000. The authorised officer accepted that offer and fixed the fee at Rs. 50,000, which was paid without protest. The scheme of section 47 permits composition of offences on terms accepted in the application, and the assessee could not, after acting on the order, contend that the authority ought independently to have fixed a lesser amount or that the matter was confined to the lower ceiling applicable to other cases.

Conclusion: The challenge to the compounding order was not maintainable on these facts, and the amount fixed under the accepted composition could not be interfered with.

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