RG-1 entry applies only to finished goods; unfinished goods in testing and packing area were not liable to confiscation.

Goods lying inside the factory in the testing and packing area, and not yet at the finished stage, were not liable to confiscation merely because they were absent from the RG-1 Register. The analysis treated RG-1 entry as applicable to finished goods, not to goods still undergoing the manufacturing, testing, and packing process. As no discrepancy was found in finished goods or raw material, and there was no indication of intended removal, confiscation and redemption fine were unwarranted. The Commissioner (Appeals) therefore correctly set aside the confiscation.

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Issues: Whether goods found within the factory but lying in the testing and packing area, and not yet at the finished stage, could be confiscated merely because they were not entered in the RG-1 Register.

Analysis: The goods were found to have been manufactured shortly before the visit and were still under testing and packing inside the factory. No discrepancy was noticed in respect of finished goods or raw material, and there was nothing to show that the goods had reached the finished stage or were intended for removal. The requirement of RG-1 entry applied to finished goods, not to goods which had not yet completed the manufacturing and finishing process.

Conclusion: The goods were not liable to confiscation for non-entry in the RG-1 Register, and the order of the Commissioner (Appeals) was in setting aside confiscation and redemption fine. The appeal was therefore rejected.

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