Unexplained non-accountal of goods justified duty and penalty despite the claim of export.

Duty and penalty on 10,340 unaccounted filters were sustained because the concurrent factual finding showed escapement from accounting and consequent prejudice to Revenue. The assessee failed to provide any satisfactory explanation at the audit, adjudication, first appeal, or Tribunal stage for the unexplained quantity. The claim that the goods were exported did not change the legal effect of their non-accountal, and the challenge to the demand and penalty failed.

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Issues: Whether duty and penalty were sustainable on 10,340 filters found unaccounted and alleged to have been clandestinely removed, despite the claim that the goods were exported.

Analysis: A concurrent finding recorded escapement of the goods from accounting, causing prejudice to Revenue. No satisfactory explanation was produced at the audit, adjudication, first appellate stage, or before the Tribunal as to why the quantity remained unexplained. The fact that the goods were said to have been exported did not alter the legal effect of the unexplained non-accountal.

Conclusion: The challenge to duty and penalty failed, and no interference was called for.

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