Bombay High Court grants relief to Chetak Technology Limited in Customs dispute over Bureau of Indian Standards marking of Lithium-Ion Cell

Background of the case

Chetak Technology Ltd. (“Petitioner“) vide a Writ Petition had sought for release of its import goods being “Lithium Ion Cell”, which were detained by the Customs Authorities (“Respondents“) on the ground that the said goods did not comply with the Bureau of Indian Standards (“BIS“) marking requirements. The Respondents had alleged that the requisite BIS marks were required to be affixed on the product as imported, and not on the packages. The Petitioner had also challenged the Show Cause Notice issued by the Respondents u/s 124 of the Customs Act, 1962, proposing to confiscate the import goods.

Bombay High Court’s Observations

1. In respect to the alleged violation of BIS Regulations, the Hon’ble Court has held that the Department has misapplied the BIS Regulations and the Public Notice. That the Petitioner has met the labelling and marking requirements as per paragraph 6 of Schedule II Scheme I of the 2018 Regulations, which allow the standard mark to be affixed on the “product” or the “package”, “as the case may be”. 
   
2. Further, the Hon’ble Court has also noted the fact that the Department had already cleared similar goods under seven other Bills of Entry without any objection. The Court therefore observed that there was no justification for detaining the goods under the two subject Bills of Entry.
3. As regards the Show Cause Notice in the matter, the Hon’ble Court has observed that the same is to be independently taken forward and therefore, has permitted the Petitioner to reply to the Show Cause Notice, while also directing expeditious disposal within a period of two months from the date a Reply to the Show Cause Notice is filed.

Relief granted to the Petitioner

The Hon’ble Bombay Court by its Order dated 02.11.2023 held that the Petitioner’s goods were illegally detained for a long time, without exercising any powers u/s 110 of the Customs Act, 1962. Therefore, the Hon’ble Court was pleased to permit clearance of the Petitioner’s goods by way of provisional release. Further, the Petitioner’s prayer for issuance of a Detention-cum-Demurrage Waiver Certificate in respect to the import goods was also granted.