ORDER :

1. The petitioner was a dealer engaged in the business of trading in electronic goods and allied articles. For the assessment year 2011-12, the petitioner had filed monthly returns only for the months of April and May, declaring a taxable turnover of Rs. 1,47,945/-. A shop inspection conducted by the Intelligence Officer, Squad No. II, Tirur on 18.11.2011, revealed that another person named Basheer was running a business in aluminium fabrication work in the business premises of the petitioner. It was found that there was no physical stock of goods. As per Annexure-C proceedings, the Intelligence Officer found that there ought to have been stock worth Rs. 47,62,925/-. He assessed the value of unaccounted sales to be Rs. 48,82,048/- and found that an amount of Rs. 4,46,673/- would be the tax due on the estimated unaccounted sale. On the basis of the above findings, he issued orders in exercise of the powers conferred under Section 74(1)(a) of the KVAT Act and compounded the offence on payment of compounding fee of Rs. 4,55,000/-. The Intelligence Officer confirmed the payment and directed the petitioner to remit the tax dues with interest through e-payment.

2. Even though Annex