Duly accounted finished goods in Form IV can defeat confiscation and penalty absent evidence of duty evasion.

Finished goods entered in Form IV register were treated as duly accounted for where the goods were found within the factory premises and the record did not show that accountal had to be confined only to RG-1. In the absence of contrary evidence dislodging the entries in the relevant records, the inference of removal with intent to evade duty could not be sustained. On that basis, confiscation and penalty under Rule 25(1)(b) of the Central Excise Rules, 2002 were not justified.

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Issues: Whether finished goods entered in Form IV register could be treated as duly accounted for so as to negate confiscation and penalty under Rule 25(1)(b) of the Central Excise Rules, 2002.

Analysis: The goods were found within the factory premises and were shown in the Form IV register. The record did not establish that accountal had to be confined only to RG-1, and there was no material to dislodge the finding that the goods were duly entered in the relevant records. In the absence of contrary evidence, the inference that the goods were removed with intent to evade duty could not be sustained.

Conclusion: The goods were treated as duly accounted for and the confiscation and penalty were not justified.

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