Retrospective exemption amendment relieved coal stock from Clean Energy Cess on the cut-off date.

A retrospective amendment to Notification No. 12/2017-CE was applied to closing stock of coal held on 30 June 2017, and the amended conditions covered goods manufactured on or before that date but cleared on or after 1 July 2017. On that basis, the coal stock qualified for exemption from Clean Energy Cess, while the payment of compensation cess on post-1 July 2017 removals supported compliance with the amended framework. The pre-amendment demand could not survive, and the impugned demand was set aside with consequential relief.

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Issues: Whether the appellant was entitled to exemption from payment of Clean Energy Cess on the closing stock of coal held as on 30 June 2017 in view of the retrospective amendment to Notification No. 12/2017-CE.

Analysis: The amended notification was read as extending the exemption to goods manufactured on or before 30 June 2017 but cleared on or after 1 July 2017, and also as covering the applicable tax consequences under the GST regime, including GST compensation cess where applicable. The appellant's stock of coal answered the amended conditions, and the revenue did not dispute the retrospective amendment. The appellant also accepted that compensation cess was being paid on removal after 1 July 2017, showing compliance with the amended framework.

Conclusion: The appellant was entitled to exemption from Clean Energy Cess on the closing stock of coal and the demand could not survive.

Final Conclusion: The impugned demand was set aside and the appeal succeeded with consequential relief according to law.

Ratio Decidendi: A retrospective exemption amendment to a notification applies to eligible stock held on the notified cut-off date when the amended conditions are satisfied, thereby defeating a demand based on the pre-amendment position.

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