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TMI Blog2020 (2) TMI 1414X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 01/2017- compensation cess (Rate) dated 28.06.2017, ₹ 400 per tone is leviable as compensation cess under Chapter Heading / Sub-heading 2701. Further as per Notification No. 01/2017- Central Tax (Rate) dated 28.06.2017, 2.5% Central GST is also leviable for the same heading i.e. 2701 under schedule l. Therefore, the power plant of the applicant attracts levy of compensation cess @ 400/per tonne - Coal rejects to be supplied by the power plant of the applicant is rightly covered under HSN 2701 for levy of compensation cess @ 400/- per tonne as HSN 2701 covers Coal; briquettes, ovoids and similar solid fuels manufactured from coal. CBIC prescribes nil rate of GST compensation cess on Coal rejects supplied by a coal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by raising the steam in the boilers, expanding it through the turbine and coupling the turbines to the generators which converts mechanical energy into electrical energy. 1.4 When coal burns in thermal plants on a high temperature, transforms the clay minerals in coal powder into a variety of fused fine particles of mainly aluminium silicate composition which is called Fly ash. Fly ash is a fused residue of clay minerals present in coal. Fly ash is a fine, glass powder recovered from the gases of burning coal during the production of electricity, which is supplied by the applicants on payment of appropriate GST. Fly ash is a fine, glass powder recovered from the gases of burning coal during the production of electricity. 1.5 In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether coal rejects to be supplied by the power plants of the applicant is covered under HSN 2701 for levy of compensation cess @ ₹ 400/- per 2.3 Whether coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant is covered for exemption from compensation cess vide Notification No. 01/2017compensation cess (Rate) dated 28.06.2017, Sr. No. 41A? 2.4 Whether coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant is covered under any other exemption notification for exemption from levy of compensation cess? 3. Discussion and Findings: 3.1 Notification No. 01/2017- compensation cess (Rate) dt. 28.06.2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Compensation Cess. 3.4 However, the applicant submitted that no any notification has been issued to legalize the clarification issued vide Press Release dated 18.01.2018. 3.5 The applicant submitted that the 28th meeting of the Goods and Services Tax (GST) Council was held on 21 July, 2018 in which it is recommended to exempt from compensation cess to coal rejects from washery. The condition, however, is that the input tax credit (ITC) should not have been taken in respect of coal rejects. To effectuate the same notification No.02/2018-Compensation cess (Rate) date 26.07.2018 was issued by making amending in Notification No. 01/2017-Compensation cess (Rate) dated 28.06.2017 vide sr. no. 41A which is extracted as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nne. 3.8 Coal rejects to be supplied by the power plant of the applicant is rightly covered under HSN 2701 for levy of compensation cess @ 400/- per tonne as HSN 2701 covers Coal; briquettes, ovoids and similar solid fuels manufactured from coal. 3.9 CBIC prescribes nil rate of GST compensation cess on Coal rejects supplied by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person vide notification No. 02/2018- compensation cess (Rate) dt. 26.07.2018. As the applicant is not covered under the coal washery which is also endorsed by the applicant in Para 12 of their application, the applicant is not covered for the exemption from compensation cess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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