Rule 209A penalty requires conscious knowledge of confiscability; without that finding, the penalty cannot stand.

Rule 209A of the Central Excise Rules required a finding of conscious knowledge that the goods were liable to confiscation before penalty could be imposed on a commercial officer for non-accountal of finished excisable goods. The adjudicating order recorded no such basis or mental element. In the absence of that necessary finding, the statutory precondition for invoking the penal provision was not met, and the penalty was set aside.

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Issues: Whether penalty under Rule 209A of the Central Excise Rules was sustainable on a commercial officer for non-accountal of finished excisable goods.

Analysis: Penalty under Rule 209A requires a finding that the person concerned had conscious knowledge that the goods were liable to confiscation. The adjudicating order contained no such finding before imposing the penalty. In the absence of a recorded basis establishing the necessary mental element, the requirement for invoking the penal provision was not satisfied.

Conclusion: The penalty was not sustainable and was set aside.

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