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2020 (2) TMI 1414 - AAR - GSTLevy of compensation cess - coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant - coal rejects to be supplied by the power plants of the applicant is covered under HSN 2701 - coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant - Benefit of N/N. 01/2017compensation cess (Rate) dated 28.06.2017, Sr. No. 41A - coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant. HELD THAT:- As per Notification 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 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 vide notification No. 02/2018-compensation cess (Rate) dated 26.07.2018 - Thus, the applicant is not covered under any other exemption from levy of compensation cess.
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