Customs clearance for lithium ion cells cannot be denied where the Standard Mark is validly placed on the package.

Regulation 6 of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018 permits the Standard Mark to be placed on the product or the package, as applicable. Customs could not insist, through a public notice, on marking only the product or reject stickers where the imported lithium ion cells bore the mark on the package. The detention was also unsupported by lawful seizure under the Customs Act, and a later show-cause notice did not change the status of the goods. On that basis, refusal of clearance was unjustified and release of the consignments was warranted.

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Issues: Whether the Customs Authorities were justified in detaining and refusing clearance of imported lithium ion cells on the ground that BIS marking had to be affixed on the product and not on the package, and whether the petitioner was entitled to release of the goods.

Analysis: Regulation 6 of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018 permits the Standard Mark to be placed on the product or the package, as the case may be. The imported goods bore the Standard Mark on the package, and similar consignments had already been cleared after physical examination. Public Notice No. 136/2018 was read by the Court as inconsistent with the Regulation insofar as it insisted on marking the product and disallowed stickers, while Public Notice No. 157/2018 clarified that clearance should not be denied merely because stickers had been affixed. The detention was also found to be unsupported by seizure under Section 110 of the Customs Act, 1962, and the show-cause notice under Section 124 did not alter the status of the goods.

Conclusion: The refusal to clear the consignments was unjustified, and the petitioner was held entitled to release of the goods.

Ratio Decidendi: Where the governing regulation permits the Standard Mark on either the product or the package, Customs cannot deny clearance by imposing a stricter inconsistent requirement through a public notice or by treating detained goods as seized without lawful seizure action.

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