Non-accountal in RG-1 register alone is insufficient for confiscation or penalty without proof of intent to evade duty.

Excess stock of brass pipes found in the factory and not entered in the RG-1 register did not, by itself, justify confiscation or penalty. The decisive consideration was whether the non-accountal was accompanied by evidence of a deliberate intent to remove the goods without payment of duty. As the record disclosed no material showing such intent, and no admission that the omission was mala fide, a mere breach of accounting requirements was treated as insufficient to sustain confiscation or penalty.

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Issues: Whether excess stock of brass pipes found in the factory, not entered in the RG-1 register, justified confiscation of the goods and imposition of penalty in the absence of evidence showing an intention to remove the goods without payment of duty.

Analysis: The goods were found in excess during verification and the Department proceeded on the basis of non-accountal in the statutory register. The decisive consideration was whether the omission was accompanied by any material showing a deliberate design to evade duty. The record did not disclose evidence that the non-entry in RG-1 was with an intention to clear the goods without payment of duty. There was also no admission by the assessee's manager that the omission was mala fide. In such circumstances, a mere contravention of accounting requirements, without proof of intent to evade, was held insufficient to sustain confiscation or penalty.

Conclusion: The confiscation and penalty were not sustainable, and the Revenue's challenge failed.

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