Knowledge of confiscability sustains Rule 209A penalty against a transporter of non-duty paid excisable goods.

Rule 209A of the Central Excise Rules, 1944 applied to a person who physically dealt with excisable goods with knowledge or belief that they were liable to confiscation. The Tribunal held that a driver transporting non-duty paid excisable goods was bound to know that such goods, removed from a factory without duty, were liable to confiscation unless exempted. On that basis, the requisite knowledge was attributed to the transporter, and the penalty under Rule 209A was upheld.

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Issues: Whether penalty under Rule 209A of the Central Excise Rules, 1944 was sustainable against the driver of a vehicle transporting non-duty paid excisable goods on the footing that he had knowledge that the goods were liable to confiscation.

Analysis: Rule 209A applied to a person who acquired possession of, or otherwise physically dealt with, excisable goods with the knowledge or belief that they were liable to confiscation. The appellant did not dispute that the goods transported were liable to confiscation. The only dispute was whether he lacked the requisite knowledge or belief. The Tribunal held that a transporter, including the driver of the vehicle, was bound to be aware that non-duty paid excisable goods removed from a factory were liable to confiscation unless exempted. On that basis, the appellant was treated as having transported confiscable goods with the necessary knowledge.

Conclusion: The penalty under Rule 209A was upheld and the appeal was rejected.

Ratio Decidendi: A transporter or driver who physically deals with non-duty paid excisable goods is liable under Rule 209A if the goods are liable to confiscation and the requisite knowledge is attributable from the legal obligation to be aware of that consequence.

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