Boris Johnson has been told his claim there was an EU directive that specified the dimensions of coffins was "a figment of your imagination".
The London Mayor was accused of pedalling EU myths on Brussels banning balloon blowing for under eights and the recycling of teabags without qualification.
Chairman of the Treasury Select Committee Andrew Tyrie said Mr Johnson was guilty of either exaggeration or misrepresentation in making his case for the UK to leave the EU.
Mr Tyrie asked the mayor, who was giving evidence on the impact of a decision for the UK to leave the EU: “Do you think it might be prudent that you add qualifications to these comments?”
Mr Johnson responded by saying there was a "huge effort" to suggest that everything the Vote Leave campaigners said about the EU was "mythical".
He said it was propaganda by the remain campaign which sought to misrepresent the arguments of those who want to leave the EU.
He said that an EU directive that meant things that had come into contact with animal products such as milk and meat could not be recycled had been interpreted by a council in Cardiff as a ban on recycling teabags.
Mr Johnson was also accused of using anecdote rather than supporting his claims with more solid research and "busking" his way through his arguments.
The mayor's performance was being touted as a Prime Minister test – he is the frontrunner to take over the Tory leadership after David Cameron.
Mr Johnson said that the EU deal was "morphing into political union" and was no longer just about the promotion of free trade.
He said that it was now able to legislate on a raft of human rights issues, that had nothing to do with free trade.
He cited the case of the daughter-in-law of the radical cleric Abu Hamza, who had a criminal record but could not be deported because of a ruling made by the European Court of Justice - and not the European Court of Human Rights.
She had tried to smuggle out a mobile phone sim during a prison visit but it was ruled she should not be returned to Morocco because she had a British son.
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