The CESTAT partially allowed the appeal concerning the seizure...

The CESTAT partially allowed the appeal concerning the seizure of goods in a SEZ on grounds of alleged mis-declaration of imported fabrics as tarpaulin. The tribunal noted that the investigation and adjudication were ongoing, with pending test reports and opportunities for the appellant to seek retesting and cross-examination of experts. The department's prima facie case on misclassification and valuation was not conclusively established at this stage. Jurisdictional issues related to SEZ status and duty liability were deferred pending investigation completion. The tribunal criticized the Adjudicating Authority for prematurely fixing the Bank Guarantee amount without finalizing the case, emphasizing that provisional release should not result in undue loss to the parties. The appellant was directed to cooperate with the investigation. The movement of goods within SEZ and to DTA must comply with SEZ Act provisions. The appeal was allowed in part.