RG-1 non-accountal of excisable goods justified confiscation and penalty where unrecorded marble tiles were found in excess stock.

Excess stock of marble tiles not entered in the RG-1 register was treated as non-accountal of excisable goods, and the explanation that the tiles were still awaiting sorting by size, quality and colour was rejected. Registration in RG-1 was required even at the semi-finished stage, so the unrecorded stock was liable to confiscation and the personal penalty was sustained. The principle applied was that failure to record excisable goods in RG-1, even where sorting is said to be pending, constitutes non-accountal justifying enforcement action.

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Issues: Whether excess stock of marble tiles not entered in the RG-1 register was liable to confiscation and whether the personal penalty imposed was justified.

Analysis: The goods were found in excess of the recorded balance and the assessee's explanation that the marble tiles had not yet reached the RG-1 stage because they had to be sorted by size, quality and colour was rejected. Entry in RG-1 was required even at the semi-finished stage, and non-recording of the goods was treated as an excusable ground for neither confiscation nor penalty.

Conclusion: The confiscation of the excess stock and the personal penalty were upheld.

Final Conclusion: The appeal failed and the impugned order was sustained in full.

Ratio Decidendi: Failure to account for excisable goods in RG-1, even when they are said to be awaiting sorting, constitutes non-accountal justifying confiscation and penalty.

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