The Compounding order for an offence under the Companies Act, 2013 in case of VVC Ltd. was issued by the compounding authority for offences by the company and the Directors of the Company as Officer in Default. The Compa

No appeal against order of composition: A person having agreed to the composition of offence is not entitled to challenge the said proceeding by filing an appeal [SV Bagi vs. State of Karnataka (1992) 87 STC 138] No penalty or prosecution after compounding: In PP Varkey vs. STO (1999) 114 STC 224 (Bom HC DB), it was held that once an offence is compounded, penalty or prosecution proceeding cannot be taken for same offence. No challenge to the compounding Order: In S Visvanathan vs. state of Kerala (1993) 113 STC 182 (Ker HC DB), it was held that once the matter is compounded, neither department nor assessee can challenge the compound order. The department cannot reopen the matter on the reason that actual suppression was much higher. In view of the reasons and case Laws cited above the director will not be allowed to make an appeal.