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Judgment
Veeraswami, C.J.—Certain irregularities were discovered on a surprise inspection in the business premises of the petitioner which amounted
to an offence. The petitioner had an option whether to face prosecution or to compound. It chose the latter and paid a fine of Rs. 750. Its
explanation had been called for but after a consideration of it, the department declined to accept it. The appellant had the further opportunity of
presenting his case in the revision petitions. But they failed. We are unable to see any error. The apprehension of the petitioner is that the findings in
the compounding proceedings might prejudice it in the assessment proceedings. We do not think that this will be necessarily so. The facts found in
the compounding proceedings may not by themselves be material in the assessment proceedings. The assessing authority will have to rest the
assessment in the light of the materials themselves which he will have to judge with a fresh mind.
On that view, the petition is dismissed.