Non-accountal in statutory records can support clandestine removal, sustaining confiscation, redemption fine and penalty.

Failure to account for excisable goods in the prescribed statutory registers can justify an inference of clandestine removal without payment of duty, even where one register entry is said to be pending. Here, the processed fabrics were found unrecorded not only in the finished goods register but also in the raw material and lot registers, and the explanation that RG-1 entry awaited inspection did not cure the wider non-accountal. On that basis, confiscation, redemption fine and penalty were upheld.

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Issues: Whether the confiscation and penalty on the basis of non-entry of processed fabrics in the prescribed records, indicating intent to clear the goods clandestinely without payment of duty, were justified.

Analysis: The seized fabrics were found unaccounted not only in the finished goods register but also in the raw material and lot registers. The explanation that entry in RG-1 was pending because the goods were to be inspected by DGS&D did not address the absence of entries in the other statutory records. Non-accountal in the prescribed records supported the inference that the goods were kept for clandestine clearance without payment of duty.

Conclusion: The confiscation and penalty were upheld and the challenge to the order failed.

Final Conclusion: The appeal was rejected, and the order confirming confiscation with redemption fine and penalty was sustained.

Ratio Decidendi: Failure to account for excisable goods in the prescribed statutory registers can justify an inference of clandestine removal and sustain confiscation and penalty.

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