Export misdeclaration under DEPB can attract confiscation and penalty where Foreign Trade conditions are breached.

Section 113(d) of the Customs Act, 1962 is broad enough to cover exports made in breach of Foreign Trade Policy conditions, including truthful declaration requirements in shipping bills. Deliberate misdeclaration of value, description, or quantity to secure DEPB benefits can therefore amount to a prohibited export for confiscation purposes, and section 114 may also be invoked for penalty. The deletion of the words "dutiable or prohibited" from section 113 does not narrow clause (d) so as to exclude such contraventions. The stated effect is that customs authorities may proceed against exports that violate export declarations and scheme conditions.

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Issues: Whether Customs authorities can invoke section 113(d) and section 114 of the Customs Act, 1962 in cases of export under claim for DEPB where there is misdeclaration of value, description or quantity to obtain undue benefits under the Foreign Trade Policy.

Analysis: Section 113(d) applies to goods attempted to be exported contrary to any prohibition imposed by or under the Customs Act or any other law for the time being in force. The scope of "prohibition" is not confined to an absolute statutory ban under section 11 of the Customs Act, 1962, but extends to contraventions of the conditions governing export under the Foreign Trade regime, including the duty to make truthful declarations in the shipping bill. The later Supreme Court rulings relied on the broader meaning of prohibition and held that deliberate misdeclaration or over-invoicing to secure benefits under export incentive schemes can render the goods liable to confiscation. The deletion of the words "dutiable or prohibited" from section 113 did not narrow clause (d) so as to exclude such violations.

Conclusion: Customs officers are empowered to invoke section 113(d) and section 114 of the Customs Act, 1962 in cases relating to export under claim for DEPB where the export is in contravention of the applicable export declarations and conditions.

Ratio Decidendi: "Prohibition" in section 113(d) includes contravention of conditions imposed under the foreign trade regime, and deliberate misdeclaration in export documents to obtain scheme benefits attracts confiscation and penalty under the Customs Act, 1962.

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