Parse Kente Collieries Limited ., In re

For the Applicant to be eligible to discharge Nil Compensation Cess on the supply of reject coal as per SI. No. 41A of the Compensation Cess Rate Notification, the coal reject should have arisen for coal on which Compensation Cess had been discharged.The coal reject has arisen out of the raw coal, on the entire quantity of which the Compensation Cess had been discharged by RVUNL, albeit of the supply of coal washed and coal rejects, the sum total of which is equal to the quantity of raw coal mined. Nil rate of Compensation Cess under SI. No. 41A of the Compensation Cess Rate Notification is applicable to the Applicant on coal rejects arising out of the raw coal mined on being subjected to the process of washing in the coal washery of Applicant.The Applicant would be entitled to Nil rate of Compensation Cess in terms of Sl. No. 41A of the Compensation Cess Rate Notification, on coal rejects supplied by it as long as the same arise from raw coal on which appropriate Compensation Cess has been paid by RVUNL at the stage of supply of washed coal and coal rejects respectively supplied by their coal washery and also when no ITC of the Compensation Cess is availed by any person