BIS compliance for film capacitors excluded where goods were for power electronics, defeating confiscation and penalty under customs law.

Imported film capacitors declared for power electronics were outside BIS standard IS 13340 because that standard excludes capacitors used in power electronic circuits and components for electrical equipment. As the goods were shown to be intended for UPS, inverter and similar power supply applications, the compulsory certification requirement under the Electrical Capacitor (Quality Control) Order, 2017 did not apply. On that basis, the alleged misdeclaration was unsupported by the record, and confiscation and penalty under Section 111(d) of the Customs Act, 1962 were not sustainable.

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Issues: Whether the imported film capacitors were covered by the BIS standard IS 13340 and the Electrical Capacitor (Quality Control) Order, 2017 so as to attract confiscation under Section 111(d) of the Customs Act, 1962 and penalty.

Analysis: The imported goods were declared consistently in the bill of entry and invoice as film capacitors meant for power electronics applications. The scope of IS 13340 excludes capacitors used in power electronic circuits and capacitors intended to be used as components in various types of electrical equipment. The record showed that the goods were purchased for use in UPS, inverter and other power supply equipment, bringing them within the exclusion. Once the goods fell outside the scope of IS 13340, the compulsory certification requirement under the Electrical Capacitor (Quality Control) Order, 2017 did not apply. The finding of misdeclaration and consequent liability to confiscation was therefore unsupported by the facts.

Conclusion: The imported capacitors were not subject to BIS compliance under IS 13340, and confiscation and penalty under Section 111(d) of the Customs Act, 1962 were not sustainable.

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