RG 1 accounting for finished goods turns on final packing and inspection; uncartoned stock could not sustain confiscation or penalty.

Loose finished pouches found in the factory before carton packing and final inspection were not required to be entered in RG 1, because the manufacturer's regular practice was to make the entry only after those processes were completed. On that factual basis, the goods had not reached the stage of final accounting, so they could not be treated as unaccounted finished stock. As the RG 1 obligation had not yet arisen, the foundation for confiscation, redemption fine, and personal penalty failed, and the cited rules did not sustain the action.

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Issues: Whether loose finished pouches found in the factory before carton packing and final inspection were liable to entry in RG 1 and, if not, whether confiscation, redemption fine, and personal penalty were justified.

Analysis: The stock was found loose and not in cartons or wrapped cartons, while the manufacturer's regular practice was to enter the goods in RG 1 only after final inspection, carton packing, and wrapping. On that factual basis, the goods had not yet reached the stage at which they were required to be accounted for in RG 1. The alleged excess stock therefore could not be treated as unaccounted finished goods, and the foundation for confiscation and penalty failed. The reference to Rule 53 and Rule 173G did not sustain the action once the goods were shown not to have attained the RG 1 stage.

Conclusion: The confiscation, redemption fine, and personal penalty were not justified, and the appeal succeeded.

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