Non-accountal of finished goods in statutory records justified penalty where excess stock suggested clandestine removal.

Non-accountal of finished goods in the R.G.-1 register was treated as evidence of excess stock and indicative of attempted clandestine removal, supporting confiscation. The explanation for the discrepancy was found unsatisfactory, and the repeated nature of the lapse reinforced the adverse inference. On that basis, the penalty was upheld as justified against the assessee.

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Issues: Whether the penalty imposed for non-accountal of finished goods in the R.G.-1 register was justified.

Analysis: The goods were found in excess of the recorded balance and were not accounted for in the statutory register. Non-accountal of goods in the R.G.-1 register was treated as indicative of attempted clandestine removal and as a sufficient basis for confiscation. The explanation offered for the discrepancy was found unsatisfactory, and the repeated nature of the lapse supported imposition of penalty.

Conclusion: The penalty was justified and the finding was against the assessee.

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