Physical dealing with excisable goods is required for Rule 209A penalty; misuse of gate passbooks was insufficient.

Rule 209A of the Central Excise Rules, 1944 applies only where a person physically acquires, transports, removes, keeps, conceals, sells, purchases, or otherwise deals with excisable goods with knowledge or reason to believe that they are liable to confiscation. The governing interpretation requires actual dealing with the goods themselves, not merely collateral misconduct. On the stated facts, the allegation was misuse of blank gate passbooks to issue fake or forged gate passes, rather than physical handling of excisable goods. The penalty therefore could not be sustained because the statutory condition for invoking Rule 209A was not met.

---

---

Issues: Whether penalty under Rule 209A of the Central Excise Rules, 1944 could be imposed only when a person had physically dealt with excisable goods with the knowledge or belief that they were liable to confiscation.

Analysis: Rule 209A makes a person liable to penalty where he acquires possession of excisable goods or is otherwise concerned in transporting, removing, depositing, keeping, concealing, selling, purchasing, or otherwise dealing with such goods, with knowledge or reason to believe that they are liable to confiscation. The governing interpretation is that physical dealing with the goods is necessary for the provision to apply. On the facts, the allegation was misuse of blank gate passbooks to issue fake or forged gate passes, not physical dealing with excisable goods themselves.

Conclusion: The condition for invoking Rule 209A was not satisfied, and the penalty could not be sustained.

---