RST Engineering wrote:

By rights the IA didn't have to repack the bearings, install the air filter,
or install the ELT battery. However, the ELT battery did have to be within
code date when (s)he did the annual or be in violation of 91.207.c.2 .

Of course, all the IA needs to do is note the discrepancy in the
airworthiness of the battery (as Jim does well know). Afterwards
the owner/pilot can come through and replace that battery and return
the aircraft to service.