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of <h1>Appellate Tribunal rules in favor of Coal India Ltd subsidiary on Clean Energy Cess dispute</h1> <h3>M/s Central Coalfields Limited Versus Commissioner of CGST & CX, Ranchi Commissionerate</h3> M/s Central Coalfields Limited Versus Commissioner of CGST & CX, Ranchi Commissionerate - TMI Issues:The issues involved in this case are the payment of Clean Energy Cess by the Appellant on the extraction of Raw Coal, the alleged excess collection of Clean Energy Cess from customers, and the demand made under Section 11D of the Central Excise Act 1994.Payment of Clean Energy Cess:The Appellant, a subsidiary of Coal India Ltd, paid Clean Energy Cess at the rate of Rs. 50 per MT on the gross extracted quantity of 29,50,080 MT of Raw Coal from July 2010 to March 2013, as required by Rule 6(1) of Clean Energy Cess Rules 2010. They submitted monthly returns and Form I for clearance of goods liable for Clean Energy Cess.Alleged Excess Collection of Clean Energy Cess:A Show Cause Notice was issued to the Appellant, alleging excess collection of Rs. 12,30,00,478 as Clean Energy Cess from customers. The demand was made under Section 11D of the Central Excise Act 1994, and interest was also demanded. The Appellant contended that they had already paid the required Clean Energy Cess on the raw coal extracted and dispatched to the Washery plant, and the Clean Coal cleared from the Washery was exempt from Clean Energy Cess as per Notification 4/2010.Judgment:The Appellate Tribunal observed that the Appellant had paid the Clean Energy Cess on the raw coal extracted from the mines, as required by Rule 6(1) of Clean Energy Cess Rules 2010. They also noted that Notification 4/2010 exempts Clean Energy Cess on Clean Coal if paid at the stage of raw coal extraction. The Appellant had cleared the Clean Coal to Public Sector Undertakings, and the final selling rate was determined after ministerial level discussions. The Tribunal found that the demand made under Section 11D was not sustainable as the Appellant had not collected excess Clean Energy Cess from customers. Therefore, the impugned order was set aside, and the appeal filed by the Appellant was allowed.
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