JUDGMENT - (1) This is an appeal by the Union of India against the decree of the City Civil Court which declared the penalty imposed by the Customs Collector upon the respondent-plaintiff to be invalid and directed refund of the fine recovered from the plaintiff. The plaintiff exported some semi-precious stones outside India to which restrictions under S. 12 of the Foreign Exchange Regulation Act applied. In terms of this section he was required to make certain declarations. These declarations were made by the plaintiff in the invoices dated April 6, 1956; April 9, 1956 and April 20, 1956. He declared in the first invoice that the full export value of the articles was Rs. 52,291-3-0 though the correct value was Rs. 63,305-5-0. Similarly, in the second invoice he declared the full export value as Rs. 39,256-10-0 though the correct value was Rs. 41,968-7-0, while the third invoice he declared the full export value as Rs. 30, 291-1-9 though the correct was Rs. 32, 446-10-9. On some information received by the Customs authority the premises of the plaintiff were searched on March 30, 1956. In this search, certain papers were seized under a panchnama by the Customs authority. From the p

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