Unaccounted excisable goods in factory records were liable to confiscation, with redemption allowed on payment of fine.

Excisable goods found in factory premises but not entered in the RG-I register were treated as unaccounted stock and were liable to confiscation under the Central Excise Rules. The rules required daily accounting of manufactured goods, and confiscation was attracted where excisable goods were not accounted for or the prescribed particulars were not entered. The contention that the goods were unfinished was rejected on the facts, and decisions cited by the assessee were distinguished because they concerned goods not yet at the RG-I stage or not shown to be fully manufactured. Confiscation was therefore upheld, subject to redemption on payment of fine.

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Issues: Whether excisable goods found in the factory premises but not entered in the RG-I register were liable to confiscation under the Central Excise Rules.

Analysis: The goods were found in excess of the recorded balance and were admittedly not entered in the statutory stock account. Rule 53 required daily accounting of manufactured goods, and Rules 173Q and 226 provided for confiscation where excisable goods were not accounted for or the required particulars were not entered. The plea that the goods were unfinished was not accepted on facts. The authorities relied upon by the assessee were distinguished because they concerned goods which had not reached the RG-I stage or were otherwise not shown to have been fully manufactured.

Conclusion: The goods were liable to confiscation and the confiscation was rightly restored, with redemption on payment of fine.

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