CESTAT allowed the appeal in part, holding that the lower...

CESTAT allowed the appeal in part, holding that the lower authority's re-classification of the exported fabrics to CTH 5007 1000 was unsustainable because test reports did not conclusively establish composition as 100% noil silk; the goods are held classifiable under CTH 5007 2090 as claimed by the appellant. Consequently, findings of mis-declaration and over-valuation were set aside, and penalties under s.114 Customs Act imposed on the named parties were quashed. Confiscation orders were revoked. However, the appellant's duty drawback claim was denied because the attempted exports did not result in physical export or realisation of foreign exchange from deemed supplies to the SEZ. Appeal disposed accordingly.