https://www.taxtmi.com/caselaws?id=1531 Confiscation and penalty under Rule 173-Q of the Central Excise Rules, 1944 were not justified where goods were found inside the factory without RG-I entry but were still on hold pending quality control approval. The court treated Rule 173-Q as penal in nature and held that it applies only when the contravention is accompanied by intent to evade duty. Since the record showed no material indicating clandestine removal or evasion, and the trade notices indicated that RG-I entry arose only after inspection, testing and packing for such goods, the action against the assessee was quashed. en-us Tue, 15 May 2007 00:00:00 +0530 Mon, 14 Apr 2008 18:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1531 Confiscation and penalty under Rule 173-Q of the Central Excise Rules, 1944 were not justified where goods were found inside the factory without RG-I entry but were still on hold pending quality control approval. The court treated Rule 173-Q as penal in nature and held that it applies only when the contravention is accompanied by intent to evade duty. Since the record showed no material indicating clandestine removal or evasion, and the trade notices indicated that RG-I entry arose only after inspection, testing and packing for such goods, the action against the assessee was quashed. Case-Laws Central Excise Tue, 15 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1531