RG 1 non-entry alone does not automatically justify confiscation or redemption fine absent clandestine removal.

Mere non-entry of manufactured goods in the RG 1 register does not automatically justify confiscation or redemption fine where the goods were otherwise reflected in daily production records and there is no evidence of clandestine removal. The commentary notes that prompt accounting under the prescribed procedure remains necessary, but confiscatory consequences depend on the seriousness of the default and the overall facts. On the stated facts, confiscation and redemption fine were not warranted, although a reduced penalty was maintained because the omission was not wholly trivial.

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Issues: Whether goods found manufactured but not entered in RG 1 register were liable to confiscation and redemption fine, and whether the penalty imposed should be sustained.

Analysis: The manufactured goods were not disputed, but the record showed that they had been entered in the daily production records and, in some cases, inspected by customers before clearance. The omission was confined to the RG 1 register and the facts did not show clandestine removal. While prompt accounting of fully manufactured goods under the prescribed procedure was necessary, the existence of a power to confiscate and impose penalty did not make such consequences automatic in every case of non-accountal. On the totality of circumstances, the default was not serious enough to justify confiscation and redemption fine, though it was not so trivial as to warrant complete exoneration from penalty.

Conclusion: Confiscation and redemption fine were set aside, while the penalty was retained in a reduced form.

Ratio Decidendi: In cases of mere non-entry in RG 1 without evidence of clandestine removal, confiscation and redemption fine are not automatic and must depend on the seriousness of the default and the overall facts of the case.

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