Export misdeclaration and confiscation fail without evidence of deliberate over-valuation or mens rea in drawback cases.

Confiscation of export goods, redemption fine and penalty were found unsustainable where the export value had been raised in line with Apparel Export Promotion Council guidance to satisfy quota requirements and no material showed deliberate over-valuation to claim excess drawback. The record did not contain market value evidence or other support for a finding of misdeclaration, and the absence of mens rea meant the statutory basis for confiscation and penalty was not established. The drawback fixation itself was not interfered with and remained undisturbed.

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Issues: Whether the confiscation of export goods and the imposition of redemption fine and penalty were sustainable where the declared export value was enhanced to meet quota requirements and no material showed a deliberate misdeclaration to claim excess drawback.

Analysis: The declared price had been raised in accordance with the Apparel Export Promotion Council recommendation for obtaining quota. On the record, no market value evidence was produced to show a deliberate over-valuation or misdeclaration for the purpose of securing excess drawback. In the absence of mens rea and supporting material, the basis for confiscation and penalty was not made out. The restriction of drawback value was not interfered with, and no order was passed on that aspect.

Conclusion: The confiscation, redemption fine, and penalty were set aside, while the drawback fixation remained undisturbed.

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