Misdeclaration and overvaluation claims fail when evidence is undisclosed or unreliable; confiscation and penalty cannot stand.

Confiscation and penalty for alleged misdeclaration and overvaluation of exported pressure die cast aluminium articles were held unsustainable because the record did not prove any deliberate false description. The test report only indicated aluminium content of not more than 85% and did not show that the goods were not aluminium articles or that an alloy description was false. On valuation, the Revenue's market enquiry was not supplied to the exporter, and comparability of the cited prices was not established; invoices for similar goods also showed wide price variation based on quality and composition. In the absence of reliable, disclosed evidence of intentional misdeclaration or inflated value, confiscation and penalty were set aside.

---

---

Issues: Whether the confiscation of the exported goods and the penalty imposed for alleged misdeclaration of description and overvaluation were sustainable.

Analysis: The goods were described as pressure die cast articles of aluminium, and the record did not show any deliberate false description. The test report only stated that aluminium content was not more than 85% without identifying the balance material. The description in the relevant export entry did not require an exclusive or absolute aluminium content, and goods made of aluminium alloy were treated as aluminium articles. On valuation, the market enquiry relied upon by the Revenue was not supplied to the appellant, and comparability of the cited market prices was not established. Invoices for similar goods also showed substantial price variation depending on quality and composition.

Conclusion: No intentional misdeclaration or sustainable overvaluation was established, and the confiscation and penalty were set aside in favour of the assessee.

Ratio Decidendi: Where the alleged discrepancy in description or value is not proved by reliable and disclosed material, and the evidence does not establish deliberate misdeclaration, confiscation and penalty cannot be sustained.

---