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2015 (11) TMI 157 - HC - VAT and Sales TaxCompounding of offense - Duty on goods stored in the undeclared godowns - Non maintenance of books of accounts - Held that:- Offence alleged to have been committed by the Petitioner, in respect of the undeclared godowns, was the failure to keep true and complete accounts. The requirement for maintaining true and correct accounts by dealers is one that is mandated by Section 40 of the Act and the penal provision that is attracted in cases of default is Section 71 of the Act. The books of accounts required to be kept by a dealer, such as the Petitioner, are enumerated in Rule 58 of the KVAT Rules. The requirement of maintaining accounts for each godown, if there is more than one godown for keeping his stock, is also mandated by the said Rule. In the light of the said provisions, the Petitioner's composition of the offence of "failure to keep true and correct accounts" virtually amounted to an admission by it of the fact that it had not kept true and correct accounts in respect of the stock in its undeclared godowns. - Petitioner cannot be permitted to go back on the admission that formed the basis of the acceptance by the State of his application for compounding under Section 74 of the Act. Accordingly, we find that the Petitioner could not have availed the appellate remedy under Section 55 of the Act against Annexure-B order of the Intelligence officer and the finding of the Appellate Tribunal that holds so is legally un-assailable. Resultantly, we see no reason to interfere with Annexure-D order of the Appellate Tribunal - Decided against assessee.
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