Non-accountal seizure invalid where same-day production may be entered later and factory records were otherwise complete.

Goods found in the factory during inspection could not be treated as unaccounted merely because the production for the date of visit had not yet been entered in the records, where the factory records were complete up to the previous day and the unit was functioning at the time of visit. Trade Notice No. 66/95 permitted entry of same-day production at the end of the day. On that basis, the seizure on alleged non-accountal was not justified, and the Commissioner (Appeals)' order vacating the seizure was upheld in favour of the assessee.

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Issues: Whether the seizure of goods on the ground of alleged non-accountal was sustainable and whether the Commissioner (Appeals) was right in vacating the seizure.

Analysis: The factory records were complete up to the previous day, and the excess material was found on the date of the officers' visit while the factory was functioning. Under Trade Notice No. 66/95 dated 25-8-95, production for the date of visit could be entered at the end of the day. In those circumstances, the goods could not be treated as unaccounted merely because they had not yet been entered in the record at the time of inspection.

Conclusion: The seizure for alleged non-accountal was not justified, and the order of the Commissioner (Appeals) vacating the seizure was upheld in favour of the assessee.

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