CESTAT Delhi Allows Duty Exemption on Lithium-Ion Battery Components

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 14.07.2025

CESTAT Delhi Allows Duty Exemption on Lithium-Ion Battery Components

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has allowed M/s XOR Technologies LLP to avail duty exemption under Entry 512 of Notification No. 50/2017-Cus, holding that the manufacture of lithium-ion batteries—even when used in power banks—satisfies the conditions of the notification. The Tribunal quashed the demand of ₹8.13 crores raised by the Customs Department and dismissed the penalty under Section 114A of the Customs Act, 1962.

Case Background

• Appellant: M/s XOR Technologies LLP, Delhi
• Products Involved: Lithium-ion cells, USB cables, nickel strips, plastic housing, etc.
• Period: FY 2017 to 2019
• Notification Involved: No. 50/2017-Cus, Entry 512
• Allegation: Components were used in power banks, not in lithium-ion batteries, violating the terms of the exemption.
• Duty Demand: ₹8,12,95,799 with interest and equal penalty under Section 114A

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 Delhi

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