Misdeclaration of export goods can justify confiscation, while fine and penalty may be reduced for bona fide lapse and proportionality.

Export goods misdeclared in description and value were found liable to confiscation because examination of the consignments and the partner's statement showed that the goods were used, old, damaged and of lower quality than declared. The misdeclaration was treated as a bona fide lapse arising from inadequate supervision rather than a deliberate scheme, but the extent of undervaluation and the wrongful benefit that could have been obtained still justified confiscation and the imposition of fine and penalty. In view of the exporter's clean past record and business scale, the redemption fine and penalty were reduced as a matter of proportionality.

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Issues: Whether the export goods were liable to confiscation for misdeclaration of description and value, and whether the redemption fine and penalty required reduction.

Analysis: The examination of the goods and the partner's statement established that the consignments were misdeclared in both description and value. The goods were shown as blank and of much higher value though they were used, old, damaged, and of poor quality. The circumstances showed that the misdeclaration was not a deliberate act but reflected lack of supervision in packing, and the exporter had no past infraction. At the same time, the extent of undervaluation and the import benefit that would have been wrongly earned justified confiscation and imposition of fine and penalty. In view of the appellant's business scale and clean past record, some reduction was warranted.

Conclusion: The misdeclaration and liability to confiscation were upheld, but the redemption fine and penalty were reduced to Rs. 50,000 each.

Ratio Decidendi: Where misdeclaration of export goods is established but the facts disclose a bona fide lapse rather than a deliberate attempt, confiscation may stand while the quantum of redemption fine and penalty may be moderated on the basis of proportionality and surrounding circumstances.

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