https://www.taxtmi.com/caselaws?id=155514 Compounding of a statutory offence cannot be enforced before giving the affected person a reasonable opportunity to explain the alleged discrepancy, and immediate collection despite time being given in the notice was invalid. The court held that the authority acted arbitrarily by collecting compounding fee and tax on the basis of alleged suppressed turnover before completing assessment, without waiting for any explanation or meaningfully considering whether the offence would be compounded. The levy and recovery were therefore set aside as unsustainable, while the assessing authority was left free to proceed afresh in accordance with law. en-us Tue, 17 Jun 1986 00:00:00 +0530 Thu, 05 Sep 2013 11:27:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155514 Compounding of a statutory offence cannot be enforced before giving the affected person a reasonable opportunity to explain the alleged discrepancy, and immediate collection despite time being given in the notice was invalid. The court held that the authority acted arbitrarily by collecting compounding fee and tax on the basis of alleged suppressed turnover before completing assessment, without waiting for any explanation or meaningfully considering whether the offence would be compounded. The levy and recovery were therefore set aside as unsustainable, while the assessing authority was left free to proceed afresh in accordance with law. Case-Laws VAT and Sales Tax Tue, 17 Jun 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155514