Levy of compensation cess— In the instant case, the applicant has filed an application requesting an advance ruling on applicability of GST Notification No. 02/2018-Compensation Cess (Rate) dated 26/07/2018 on sale of coal reject by a power plant of Chhattisgarh State Power Generation Company Limited (CSPGCL) to the applicant and as to whether the said Power Plant selling coal reject to them is liable to collect compensation cess even though the applicant don't get ITC on coal, resulting in increase in cost of coal waste.

Held that— GST Notification No. 02/2018-Compensation Cess (Rate) dated 26/07/2018 extending nil liability of compensation cess on coal rejects supplied by a coal washery, will not be applicable to coal rejects supplied by a power plant and further such power plant supplying coal rejects to the applicant is liable to collect compensation cess.