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 batteriesβeven when used in power banksβsatisfies the conditions of the notification. The Tribunal quashed the demand of βΉ8.13 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: βΉ8,12,95,799 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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