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2018 (12) TMI 352 - HC - VAT and Sales TaxCompounding of tax - voluntarily switched over to regular assessment - case of assessee was that the assessee was coerced into agreeing for the compounding of the offence - Limitation. Whether the assessee would have agreed to payment of such a compounding fee, especially in the context of the assessee having challenged the original order itself on the ground of coercion? - Held that:- This is a fit case where this Court should exercise discretion insofar as denying the Department the right to make any revision of the compounding fee which already has been accepted by the assessee and amounts paid. Disentitlemnet of the regular assessment made on the assessee being dis-entitled to continue the compounding under Section 8(c) due to the commencement of the beer and wine parlour - Held that:- The assessee could take a contention that there should be a cancellation first effected before the regular assessment is made. On the assessee obtaining a beer and wine parlour licence and commencing the sale, the entitlement to continue compounding under Section 8(c) automatically stands extinguished. There is absolutely no requirement of cancellation first before a regular assessment is taken up. We reject the contention so raised. Limitation - Held that:- Limitation raises mixed questions of fact and law. But in the present case, there is no dispute on facts. The relevant facts are only the subject assessment year as also the date on which the Department initiated proceedings to determine the taxable turnover under Section 25(1) based on the detection of the dis-entitlement of the assessee to continue under the compounding scheme - the question of limitation is only a question of law. Assessment order set aside - appeal allowed - decided in favor of appellant.
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