CESTAT Hyderabad Upholds DFIA Exemption on Lithium-Ion Battery Imports

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 21.04.2025

CESTAT Hyderabad Upholds DFIA Exemption on Lithium-Ion Battery Imports

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Hyderabad Bench – Court No. I has dismissed the Department’s appeal and upheld the exemption granted to M/s Olectra Greentech Ltd. for import of Lithium-ion batteries under a Transferable DFIA (Duty-Free Import Authorisation) scheme.

Background:

• Olectra Greentech imported lithium-ion cells under a DFIA license issued against exports of Agricultural Tractors.
• The customs department denied the benefit of exemption under Notification No. 25/2023-Cus dated 01.04.2023, stating that lithium-ion batteries do not match the export input description of “automotive batteries.”
• The Commissioner (Appeals) had earlier ruled in favor of Olectra, prompting a departmental appeal.

This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

Source: CESTAT Hyderabad

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