Statutory record entry timing under excise rules barred confiscation and penalty absent evidence of clandestine removal.

Non-entry in statutory records did not justify confiscation or penalty where the goods were manufactured late at night and early morning and, under Rule 53 of the Central Excise Rules, 1944, were required to be entered only at the close of the day of manufacture. The inspection occurred on the same day, so the omission could not be treated as non-accountal. In the absence of any material showing clandestine removal, the goods were held not liable to confiscation or penalty, and the Revenue had no basis to disturb the appellate authority's order.

---

---

Issues: Whether the goods were liable to confiscation and penalty for alleged non-entry in the statutory records, and whether the entry was required only at the close of the day of manufacture under Rule 53 of the Central Excise Rules, 1944.

Analysis: The material on record did not establish liability for confiscation or penalty. The goods were found to have been manufactured late in the night and early morning, and the finding recorded that they were required to be entered in the statutory records only on 8-5-1992 at the close of the day. Since inspection was also conducted on the same day, the omission could not be treated as non-accountal. There was also no material indicating clandestine removal.

Conclusion: The goods were not liable to confiscation or penalty, and the Revenue had no ground to interfere with the order of the appellate authority.

---