Finality of compounding orders under tax law bars revisional cancellation where the statute makes revision subordinate to its provisions.

A valid composition order under the Kerala Value Added Tax Act attains finality once the offence is compounded on payment of tax and compounding fee, and neither party can resile from that arrangement. The court held that the suo motu revisional power could not be used to cancel such an order because that power is expressly subject to the Act's other provisions, including the finality attached to compounding under the statute. Any concern that tax liability had been understated had to be dealt with through separate assessment proceedings, not by reopening the compounding order. The cancellation order was therefore unsustainable and the compounding orders were restored.

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Issues: Whether an order permitting composition of an offence under the Kerala Value Added Tax Act could be cancelled in exercise of suo motu revisional power under Section 56, and whether the compounding order attained finality so as to bar such interference.

Analysis: Section 74 permits composition of specified offences on payment of tax and compounding fee, and on such payment no further penal or prosecution proceedings can be taken for that offence. The acceptance of an offer to compound creates a binding legal arrangement between the assessee and the Department, and neither side can resile from it. The revisional power under Section 56 is expressly subject to the other provisions of the Act, so it cannot be used to override the finality attached to a valid compounding order under Section 74. The fact that the Department believed the tax liability had been understated did not alter this position, because assessment proceedings are distinct and the assessing authority could independently determine tax liability under the Act.

Conclusion: The compounding order could not be reopened or cancelled under Section 56, and the cancellation order was unsustainable.

Final Conclusion: The writ petitions succeeded and the cancellation of the compounding orders was set aside, with consequential relief to the petitioners.

Ratio Decidendi: A valid compounding order under the statute attains finality and cannot be revised under a general revisional power that is expressly made subject to the Act's other provisions.

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