Tribunal upholds confiscation of unaccounted goods seized at factory for potential duty evasion.

The tribunal upheld the confiscation of unaccounted goods in the factory premises due to the potential for clandestine removal without duty payment. The goods, fully finished and packed for export, were seized as they were not recorded in the statutory register, indicating a risk of evasion. While the redemption fine and penalty were imposed, they were reduced considering the goods' export purpose. The decision aimed to balance enforcement with fairness in penalty imposition, ultimately affirming the confiscation but mitigating the financial penalties.

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Issues:
1. Confiscation of unaccounted goods in factory premises.
2. Allegation of clandestine removal without duty payment.
3. Consideration of malafide intent for confiscation.
4. Assessment of redemption fine and penalty imposition.
5. Goods meant for export and impact on penalty.

Analysis:
The case involved an appeal against an impugned order regarding the confiscation of goods found unaccounted in the factory premises of the appellant. The Preventive Staff of Central Excise, upon visiting the premises, discovered fully finished goods packed for export, valued at &8377; 40,39,532, with a duty liability of &8377; 3,32,857. The goods were seized as they were not recorded in the statutory RG-1 register, and pre-dated 'OK stickers' were found on the pallets/boxes. The appellant argued that mere non-accountal in records should not lead to confiscation without malafide intent. However, the Revenue contended that the goods were ready for clandestine removal without duty payment.

Upon review, the tribunal found that the goods, if not intercepted, would have been cleared clandestinely. This indicated a potential intent to evade duty payment, justifying confiscation. The tribunal emphasized that the seized goods were fully finished and ready for clandestine clearance, leading to the decision that confiscation, redemption fine, and penalty were warranted. However, considering the goods were meant for export, the tribunal deemed the redemption fine and penalty excessive and reduced them to &8377; 1 lakh and &8377; 50,000, respectively.

In conclusion, the appeal was disposed of with the decision to uphold the confiscation of goods due to the potential for clandestine removal without duty payment. The reduction in redemption fine and penalty was based on the goods' intended export status, aiming to balance enforcement with fairness in the penalty imposition.

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