Bona fide purchaser protection under Central Excise Rules: no penalty or confiscation for manufacturer's gate pass and labelling defects.

Under the Central Excise Rules, a bona fide purchaser of excisable goods cannot be penalised or have the goods confiscated for defects in the gate pass or labelling where those obligations rested on the manufacturer under the self-removal procedure. The purchaser had no role in preparing the gate pass or affixing labels, and the department had already proceeded against the manufacturer for the irregularity. Because the provisions are quasi-penal, the alleged offence had to be strictly proved against the person proceeded against; no independent offence by the purchaser was established. The confiscation and penalty against the purchaser were therefore unsustainable.

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Issues: Whether a bona fide purchaser of excisable goods can be penalised or the goods confiscated for alleged defects in the gate pass and labelling attributable to the manufacturer under the Central Excise Rules.

Analysis: The relevant rules placed the obligation regarding proper gate pass entries and prescribed labelling on the manufacturer, particularly under the self-removal procedure. The purchaser had no role in preparing the gate pass or in affixing the labels, and the department had already proceeded against the manufacturer for the irregularity. The quasi-penal nature of the provisions required the alleged offence to be strictly and fully brought home to the person proceeded against. On the facts, the purchaser was unconnected with the alleged misdescription or mixed labels, and the department had not established any independent offence by him.

Conclusion: The purchaser could not be penalised or subjected to confiscation for the same alleged irregularity, and the order was unsustainable insofar as it related to him.

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