( 1 ) THE petitioner is a dealer carrying on business in stainless steel articles who is registered as a dealer under the APGST Act, 1957 (for short "the Act") and he is on the rolls of the 1st respondent, namely the Commercial Tax Officer (Intelligence), Guntur. While so, the business premises of the petitioner was inspected by the 1st respondent along with his staff on 22-9-1988 and during the course of inspection one small size pocket note book and seven slips of papers which contain sales and purchases of stainless steel articles were recovered. A detailed stock inventory was also drawn. The inventory revealed that there is a deficit stock of 241 Kgs 965 grams of stainless steel articles. On verification of transactions contained in the slips with reference to the account books, it was noticed that the dealer failed to record the purchases of stainless steel to an extent of Rs. 18,878/- and sales of stainless steel articles to an extent of Rs. 23,660/- during the relevant assessment year 1988-89. The petitioner came forward to compound the offence. In that regard, he submitted a consent letter dated 23-9-1998 expressing his willingness to pay the compounding amo