Compounding of offence forecloses factual challenges, though a pure jurisdictional objection may still be raised later.

A pure objection that an authority lacked inherent jurisdiction may still be raised despite non-contestation, because jurisdiction cannot be conferred by consent. However, where a taxpayer opts for compounding of an offence, factual disputes about the underlying allegations are foreclosed and the composition order cannot later be reopened on merits. Here, the detention notice concerned not only alleged storage issues but also failure to produce documents showing compliance with VAT requirements for transport and delivery of taxable goods, so the dispute involved matters that could have been contested before compounding. The revisional challenge therefore failed and no interference with the order was warranted.

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Issues: Whether the revisional challenge to the composition order was maintainable on the ground of lack of jurisdiction, and whether the petitioner could dispute the order on merits after opting for compounding of the offence.

Analysis: A pure objection of inherent lack of jurisdiction may be raised even if the proceeding was not contested before the authority, because jurisdiction cannot be conferred by consent. However, once the petitioner opted for compounding, factual disputes stood foreclosed. The detention notice was not limited to storage in an undisclosed godown, but also alleged failure to produce documents showing compliance with the VAT law in relation to transport and delivery of taxable goods. In such circumstances, the matter involved questions that could have been examined on contest, and the composition order could not thereafter be attacked on merits.

Conclusion: The challenge failed. The petitioner was not entitled to reopen the matter on merits after compounding, and the revisional order did not warrant interference.

Ratio Decidendi: Opting for compounding of an offence forecloses factual challenges to the underlying allegations, though a pure jurisdictional objection may still be raised.

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