TMI Blog1968 (5) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... Nanjappa was present in person along with his son Sri H.N. Janardhana, another partner of the firm in response to a notice issued on 4th April, 1966, and filed the said reply. He accepted the facts and offences mentioned in our show cause notice and finally he agreed to compound the offences departmentally in lieu of prosecution for a sum of Rs. 800 only for all the offences committed. Since the offences committed by the assessees were noticed by me on the first time, I agree to accept the said compounding fee of Rs. 800 for the offences committed by them. Accordingly he came forward and had given his acceptance in the form of a statement to pay Rs. 800 and since he had not brought the cash he had agreed to send a cheque for the said amount of Rs. 800 tomorrow itself, i.e., on 20th April, 1966." * * * * "Because the assessees pleaded for consideration and lenient view I have accepted their offer of Rs. 800 compounding fee without prejudice to the examination of their books of account for the previous period of four years and to reopen the case if there are serious omissions and suppressions even for the earlier period." 2.. The petitioners, however, did not pay the said sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the offender as the proper and sufficient satisfaction, not only for the society as a whole, but also for the individual or individuals personally aggrieved by the offence. But, in the case of certain offences, the law permits the aggrieved person himself to agree to receive or receive satisfaction other than actual punishment or satisfaction in substitution of punishment for his grievance caused by the commission of the offence. That satisfaction is permitted to be substituted for the punishment prescribed by the law by an agreement between the offender and the aggrieved person. 7.. In actual event, therefore, compounding of an offence or composition of an offence otherwise than by regular punishment is a matter of agreement between the offender and the aggrieved party which the law permits them to arrive at in substitution of actual imposition of the punishment prescribed by law. According to the relevant provisions of the Code of Criminal Procedure, composition of an offence means an acquittal in the eye of the law. 8.. It is in the light of the above general principles that one has to understand the provisions of section 31 of the Mysore Sales Tax Act, 1957. The said sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d authority and that therefore any action taken by the prescribed authority for composition of an offence is not capable of being appealed against under section 20 of the Act. 12.. I do not wish to express any opinion on the last-mentioned question of appealability; because, even on principle, an absence of a right of appeal may not affect the position because, composition is essentially a matter of agreement and even in the normal rules of procedure, an order by consent is never subject to appeal. 13.. The more difficult question is whether we should read the word "accept" as amounting to actual physical receipt of the money. Depending upon the context, the word "accept" may mean "to take or receive what is offered"; "to take or receive as adequate"; "to take or receive with a consenting mind"; "to take upon oneself as a responsibility"; (as, for example, when one accepts a bill or a draft). In all circumstances, it would mean or imply that he who accepts a thing regards what he is accepting as adequate, sufficient or satisfactory. In the context of composition of an offence, it may and should reasonably be regarded as indicating that the satisfaction received or agreed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement, solemnly arrived at, which is not a matter countenanced by law. There must be in the nature of things some time-lag between the acceptance at the time mentioned above and the actual receipt of the composition money. If between the two points of time, the dealer is to be regarded as still retaining the option of not paying the composition amount, the officer should also be regarded as still retaining the option of prosecuting the dealer. If so, an agreement involving an offer by the dealer and an acceptance by the authority would not be an agreement at all; whereas if the ordinary principles of the law of contract are to be applied it would certainly be an agreement binding on both the parties and therefore capable of being enforced by each of them as against the other. An interpretation which would permit what is in fact a binding agreement to be broken or refused to be performed by the parties should not in my opinion be accepted, especially when one of the parties thereto is a statutory authority exercising a statutory power. 17.. From the point of view of the dealer, it should not be forgotten that composition confers upon him a very valuable right, namely, of its ..... 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