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Coal rejects to be disposed of by way of sale at very nominal price by the power plants is covered under HSN 2701 and attracts levy of compensation cess @ Rs. 400/- per MT

Compensation cess—In the instant case, applicant have three Coal based Thermal Power Generation plants in the state of Haryana. Question on which Advance Ruling is required is as follows— 1. Whether coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant attracts levy of compensation cess @ Rs. 400/- per MT? 2. Whether coal rejects to be supplied by the power plants of the applicant is covered under HSN 2701 for levy of compensation cess @ Rs. 400/- per 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. 01/2017 compensation cess (Rate) dated 28.06.2017, Sr. No. 41A? 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? Held that— 1. Coal rejects to be disposed of by way of sale at very nominal price by the power plants of the applicant attracts levy of compensation cess @ Rs. 400/- per MT; 2. Coal rejects to be supplied by the power plants of the applicant is covered under HSN 2701 for levy of compensation cess @ Rs. 400/- per MT. 3. Coal rejects to be disposed of by way of sale at very nominal price by the power plants of the applicant is not covered for exemption from compensation cess. 4. The applicant is not covered under any other exemption from levy of compensation cess.