183.            prosecution was initiated against Mr. A for supplying goods (Rs.6 crore taxable @12%) from one place to another without issue of any invoice, thus evading payment of tax. Further A applied for compounding under section 138. Determine the min and max amount to be paid.

Compounding may be allowed only after making payment of tax interest and penalty involved in such offence. Tax payable = 12% of 6 Crore = 72,00,000

Min amount = at least 10,000 or 50% of tax (whichever is higher) = 36,00,000

Max amount = at east 30,000 or 150% of tax (whichever is higher) = 10,80,00,000