Export misdeclaration requires proof of wilful intent; inadvertent quantity or description errors do not justify confiscation and penalty.

Export misdeclaration was not proved where the goods were sold under a stock-lot purchase order at an agreed unit price, the excess quantity was treated as an inadvertent packing error, and the declared value was supported by the purchase order, invoice and remittance. The description of the goods as cotton denim garments was not shown to be false merely because some items were damaged or seconds. In the absence of evidence of wilful or dishonest contravention, confiscation and penalty under the Customs Act could not be sustained; confiscation under Section 119 also failed where it was not covered by the show cause notice. The assessee succeeded and the impugned order was set aside.

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Issues: Whether the export goods were misdeclared in description, quantity and value so as to justify confiscation and penalty under the Customs Act, 1962.

Analysis: The goods were exported against a stock-lot purchase order at an agreed unit price, and the excess quantity found was treated as an inadvertent packing error rather than a deliberate overstatement. The declared value was supported by the purchase order, invoice and remittance received, and the description of the goods as cotton denim garments was not shown to be false merely because some pieces were damaged or seconds. On these facts, the finding of wilful misdeclaration was not supported by evidence. The confiscation based on Section 119 could not stand where there was no corresponding proposal in the show cause notice, and the penalty imposed without proof of dishonest or contumacious conduct was unsustainable.

Conclusion: The issue was answered in favour of the assessee. Confiscation and penalty were set aside.

Final Conclusion: The appeal succeeded and the impugned order of confiscation and penalties was vacated.

Ratio Decidendi: Confiscation and penalty for export misdeclaration require proof of deliberate or wilful contravention; an inadvertent discrepancy in quantity or description, without dishonest intent, does not justify such consequences.

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