ORDER
Jyoti Balasundaram, Member (J)
1. The authorities below have ordered consifaction of 6000 pieces of Lithium Batteries (Dry cells) valued at approximately 5.66 lakhs imported by the appellants herein, with option to redeem on payment of fine of Rs. 1,90,000/-. In addition, a penalty Rs. 35,000/- has been imposed on the importer. The confiscation arises as a result of holding that the goods in question are consumer goods, which can be imported only against specific import licence, which the importer did not possess.
2. We have heard both sides. We find that as per the ITC (HS) classifications of export and import items 1992-97, notified under the relevant Exim Policy, except for re-chargeable cells and dry batteries which are permitted to be imported against SIL goods falling under tariff heading 85.06 covering primary cell and primary batteries are restricted for import as they are treated as consumer goods. The goods in this case are admittedly lithium batteries falling under ITS (HS) 8506.50. Therefore, it is not correct or the importers to contend that the goods do not fall within the definition of consumer goods. We therefore, uphold the confiscation. However, considering that the importers are actual users of the batteries in manufacturing of Electronic Energy Meters, we reduce the fine to Rs. 1 lakh and penalty to Rs. 15,000/-.
3. The appeal thus partly allowed as above with consequential relief due to the appellants.