Import licence requirement for lithium batteries upheld, with confiscation sustained but fine and penalty reduced.

Lithium batteries imported under ITC (HS) 8506.50 were treated as consumer goods under the applicable import classification and, being restricted for import, required a specific licence. In the absence of such licence, confiscation was justified. The importers' status as actual users of the batteries in manufacturing electronic energy meters was relevant only to the extent of monetary relief, so the redemption fine and penalty were reduced. The ruling confirms that restricted classification can sustain confiscation even where the goods are used in manufacture, but actual user status may mitigate the quantum of fine and penalty.

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Issues: Whether lithium batteries imported under ITC (HS) 8506.50 were consumer goods requiring a specific import licence, and whether the confiscation, redemption fine and penalty called for interference.

Analysis: The goods were primary batteries falling under Tariff Heading 85.06, which were treated as consumer goods under the applicable ITC (HS) classifications and were restricted for import except in the permitted category. As the importers did not possess the necessary licence, the confiscation was justified. However, the importers were actual users of the batteries in manufacturing electronic energy meters, which was relevant to the extent of monetary relief.

Conclusion: The confiscation was upheld, but the redemption fine and penalty were reduced.

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