Statutory stock register non-entry justified confiscation and penalty, though the penalty quantum was reduced on facts.

Unaccounted finished goods found in the factory, where the RG-1 register had been updated only to an earlier date and showed nil balance, constituted a breach of the duty to maintain a daily account of finished goods. On that basis, confiscation under Rule 25(1)(a) was treated as justified and penalty was attracted for non-entry in the statutory stock register. The confiscation was upheld and the penalty was sustained in principle, although the penalty amount was reduced in view of the overall facts and circumstances.

---

---

Issues: Whether the unaccounted stock of finished goods found in the factory was liable to confiscation and whether the penalty imposed for non-entry in the RG-1 register was sustainable.

Analysis: The stock of copper ingots was found in excess of the entries in the RG-1 register, which had been written only up to an earlier date and showed nil balance. This constituted contravention of the requirement to maintain a daily account of finished goods in the statutory stock register. On that basis, confiscation under Rule 25(1)(a) was justified and penalty was also attracted. However, considering the overall facts and circumstances, the quantum of penalty required reduction.

Conclusion: The confiscation was upheld, the penalty was sustained in principle, and the penalty amount was reduced to Rs. 50,000.

---