Parse Kente Collieries Limited ., In re
Date: December 17, 2021
Subject Matter
Applicability of Compensation Cess on supply of coal rejects by the coal washery
Summary
Nil rate of Compensation Cess is applicable on supply of coal rejects by the coal washery, as long as it arise from the raw coal on which appropriate Compensation Cess has been paid during the supply and where no Input Tax Credit (“ ITC ”…
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 sup…