The Appellate Tribunal considered the entitlement to duty ...

DFIA scheme: CESTAT ruled Lithium Ion Batteries eligible for duty exemption under N/N. 25/2023-CUS as "Automotive Battery". Import must be capable for use in electrical vehicles.

Case Laws     Customs

June 19, 2024

The Appellate Tribunal considered the entitlement to duty exemption u/s N/N. 25/2023-CUS for the import of Lithium Ion Battery under a Transferrable DFIA License. The issue was whether the battery falls under the description of "Automative Battery" as per the license. The respondent argued that the imported Lithium Battery is a type of automotive battery, supported by a certificate from IIT engineers. The Tribunal emphasized the "capability of use" of the battery, not just similarity to other automotive batteries. It upheld that the DFIA scheme allows for broad categorization under "capable of being used in electrical vehicles." The appeal by the Department was dismissed, granting relief to the respondent.

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