Record-keeping omission did not justify confiscation where Rule 173Q was inapplicable to grey fabrics in process.

Omission to make the required entry in records did not, by itself, justify confiscation of grey fabrics found in process where the respondent was not a manufacturer of grey fabrics on which duty was payable. On that footing, Rule 173Q was held inapplicable to the goods, and the confiscation basis failed.

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Issues: Whether grey fabrics found in the respondent's process were liable to confiscation for alleged non-entry in the relevant records in contravention of Rule 173G(4), and whether Rule 173Q applied to such goods.

Analysis: The admitted omission to make the required entry in the records did not, by itself, establish that the goods were liable to confiscation. The goods were grey fabrics in process, and the respondent was not a manufacturer of grey fabrics on which duty was payable. In that situation, the confiscation provision in Rule 173Q was held inapplicable.

Conclusion: The goods were not liable to confiscation and the departmental challenge failed.

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