Compounding under trade tax law treated as an agreement, barring revision absent concealment or misrepresentation.

An order accepting compounding under section 7D of the U. P. Trade Tax Act, 1948 operates as an agreement between the assessee and the revenue. On that basis, it is not amenable to revision under section 10B merely because a different view is taken on timeliness or circular compliance. Revisional interference is justified only where the assessee has concealed material facts or made a misrepresentation. In the stated facts, no concealment or misrepresentation was shown, so the compounding order was held not revisable and the assessee's revisions succeeded.

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Issues: Whether an order accepting an application under the compounding scheme under section 7D of the U. P. Trade Tax Act, 1948 is in the nature of an agreement and, if so, whether it can be revised under section 10B of the Act in the absence of concealment or misrepresentation.

Analysis: The compounding application had been accepted by the assessing authority and the acceptance operated as an agreement between the assessee and the revenue. Such an order could not be treated as a revisable order under section 10B merely because the Deputy Commissioner (Executive) took a different view on timeliness. Revisional interference was not justified when there was no allegation that any material fact had been concealed or that the assessee had made any misrepresentation. The controversy as to whether the applications were within time in view of the circulars was therefore left untouched.

Conclusion: The order passed under section 7D was not revisable under section 10B in the facts of the case, and the revision succeeded in favour of the assessee.

Final Conclusion: The compounding orders and the Tribunal's order were set aside, and the assessee's revisions were allowed.

Ratio Decidendi: An order accepting compounding under section 7D of the U. P. Trade Tax Act, 1948 is an agreement and cannot be revised under section 10B unless it is shown that the assessee concealed material facts or made misrepresentation.

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