Unaccounted excisable goods attract confiscation and penalty without proof of clandestine intent under Rule 25(1)(b).

Unaccounted excisable goods found in factory , when not entered in statutory records, fall within Rule 25(1)(b) of the Central Excise Rules, 2001 and are liable to confiscation. The rule does not require proof of an intention to clandestinely remove the goods without payment of duty before confiscation can follow. Once non-recording is established, penalty is also permissible; intention is relevant only to the quantum of penalty. The confiscation and penalty were upheld, with the monetary relief reduced.

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Issues: Whether goods found in the factory premises but not entered in the statutory records were liable to confiscation and whether penalty could be imposed under Rule 25 of the Central Excise Rules, 2001.

Analysis: Goods which are found manufactured or kept in the factory without being accounted for in the statutory records fall within the mischief of Rule 25(1)(b) of the Central Excise Rules, 2001. The rule does not require proof of an intention to clandestinely remove the goods without payment of duty for confiscation to follow. Once the violation of the recording requirement is established, confiscation is attracted, and penalty is also permissible, with intention being relevant only to the quantum of penalty.

Conclusion: The goods were rightly held liable to confiscation and the respondents were liable to penalty, though the amounts of redemption fine and penalty were reduced.

Final Conclusion: The appeal succeeded to the extent of restoring confiscation and penalty, with modified monetary relief.

Ratio Decidendi: Unaccounted excisable goods are liable to confiscation under Rule 25(1)(b) of the Central Excise Rules, 2001, and penalty may be imposed for such contravention without proof of clandestine intent.

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