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TMI Blog2023 (7) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... of Coking Coal and other Coal. They regularly submitted their monthly ER-1 return for clearance of excisable goods and Form I for clearance of goods liable for Clean Energy Cess. 2. Raw Coal is extracted from Rajrappa Project mines. After extraction of Raw Coal, it is sent to Rajrappa Washrey Plant for further processing such as washing and sizing. 3. As per Rule 6(1) of Clean Energy Cess Rules 2010, Cess on specified goods removed from the mine during a month shall be paid @ Rs 50/- per MT, by 5th of the succeeding month. 4. As per Rule 2(g) of Clean Energy Cess Rules 2010, removal means dispatch of specified goods from a mine, shall include dispatch of such goods for captive consumption within that mine for any purpose other than for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Washery plant. In the Washery, the raw coal was converted into four different varieties of coal namely, Clean Coal (yield of slurry and reject is 22%), WCP (yield Approx 35%), Slurry and Reject-by Product (Yield of slurry and reject is 22%). They stated that the above said different varieties of coal on clearance from the Washery are exempt from levy of Clean Energy Cess , as the Cess has already been paid on the raw coal extracted from the mines, as per Notification 4/2010 dated 22.06.2010. 8. The Appellant stated that the Notice has demanded 'excess collection of Clean Energy Cess' against sale of Clean Coal as per presumptive calculation and presumed recovery of Clean Energy Cess of Rs. 12,30,00,478 on 16,78,729 MT of Clean Coal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Final Selling Rate of Clean Coal between the Appellant and its buyers is a subject matter of several rounds ministerial level discussion between Ministry of Coal and Ministry of Steel and hence usually final price is mutually fixed only after the year end of supply made and accordingly necessary debit/credit notes were issued to adjust the differential price against the earlier period supply of Clean Coal . This is evident from the fact that Final MOU with SAIL for the fixation of sale price of clean coal for Financial Year 2010-11 was signed on 04.05.2011 and for Financial Year 2011-12, the MOU was signed on 20-7-2012. Accordingly, debit notes were raised @ Rs. 73.27 for realization of increased MOU price for the supplies made duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling under Central Excise Tariff headings 2701, 2702, 2703 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than raw coal, raw lignite and raw peat, from the clean energy cess leviable under section 83 of said Finance Act. Provided that the said exemption shall be applicable subject to the condition that applicable clean energy cess has been paid at the stage of raw coal, raw lignite or raw peat from which the said goods are produced or manufacture. 15. Thus, as per the Notification cited above, all goods falling under the Chapter Heading 2701 is exempt from levy of Clean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 and for Financial Year 2011-12, the MOU was signed on 20.-7-2012. Accordingly debit notes were raised @ Rs. 73.27 for realization of increase MOU price for the supply made during Financial Year 2010-11 and also credit notes were issued for April 2011 to August 2012 based upon the Final MOU of FY 2011-12. In the impugned order, the Adjudicating Authority has presumed this differential MOU price for financial year 2010-11 @ Rs. 73.27 per MT, as deemed collection of Clean Energy Cess for the period of July 2010 to March 2013. However, while presuming to the differential rate of price increase @ Rs. 73.27 per MT on the Clean Coal, the Ld. Adjudicating Authority has totally overlooked the basic spirit of levy of Clean Energy Cess: a) Clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has paid Clean Energy Cess @ Rs 50 per MT on the quantity of raw coal of 29,50,080 MT amounting to Rs.14,76,04,018. After processing in the Washery, the Clean Energy Cess is chargeable only on the Clean Coal, as there is no Clean Energy Cess on the other products emerge in the Washery. Thus, the Appellant has to collect the amount of Rs 14,76,04,018/- paid on 29,50,080 MT of raw coal from 16,78,729 MT of Clean Coal cleared from the Washery. To collect the Clean Energy Cess of Rs.14,76,04,018/- from 16,78,729 MT of Clean Coal, the rate has to be applied higher than the @50 per MT paid earlier. It is observed that the Appellant has cleared all the clean coal to two public Sector undertakings, namely SAIL and RINL at a negotiated price. The Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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