Misdeclaration of value requires deliberate falsity; inadvertent invoice omission was insufficient for confiscation and penalty.

Non-inclusion of one invoice in the bill of entry was treated as an inadvertent omission, not a deliberate misdeclaration of value. As the declared value was not shown to be incorrect for the invoice originally included, the facts did not establish the ingredients for confiscation or penalty. Section 111(m) was therefore held not to be violated, and the confiscation and penalty were set aside in favour of the assessee.

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Issues: Whether non-inclusion of one invoice in the bill of entry amounted to misdeclaration of value so as to justify confiscation of the goods and imposition of penalty.

Analysis: The omission of the second invoice was accepted as an inadvertent mistake. The value declared in the bill of entry was not found incorrect in respect of the invoice originally included, and the facts did not establish a deliberate misdeclaration of value. On that basis, the conditions for invoking confiscation and penalty were not made out.

Conclusion: Section 111(m) was held not to have been violated, and the confiscation and penalty were set aside in favour of the assessee.

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