Rechargeable batteries classified as electric accumulators were held outside the import negative list and did not need a licence.

Rechargeable storage batteries classifiable as electric accumulators under Heading 85.07 were held not to be consumer goods for import-control purposes. The classification under the Customs Tariff and the HSN Explanatory Notes, which distinguish rechargeable batteries from primary cells, supported the view that such goods require charging and are not goods for direct consumer use. Applying earlier Tribunal reasoning on nickel-cadmium rechargeable batteries, the imported batteries were found outside the Negative List of the relevant Import Policy and did not require an import licence. The Revenue's challenge to their importability failed and the impugned orders were upheld.

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Issues: Whether maintenance free rechargeable storage batteries imported under Heading 85.07 of the Customs Tariff Act, 1975 were consumer goods hit by the Negative List of the relevant Import Policy and therefore required an import licence.

Analysis: Rechargeable batteries are electro-chemical devices that store energy during charging and release it during discharge. The classification under Heading 85.07 as electric accumulators and the HSN Explanatory Notes distinguishing rechargeable batteries from primary cells supported the view that such goods were not consumer goods. The earlier Tribunal decision holding that nickel cadmium rechargeable batteries were not consumer goods and required further processing before use was applied to the same effect.

Conclusion: The imported goods were not consumer goods covered by the Negative List and did not require an import licence; the appeals by the Revenue failed.

Final Conclusion: The impugned orders were upheld and the Revenue's challenge to the importability of the rechargeable batteries was rejected.

Ratio Decidendi: Rechargeable batteries that require charging and are classifiable as electric accumulators are not consumer goods within the negative list for import control purposes.

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