Refund of Cenvat and Clean Energy cess paid for purchase of Coal by Thermal Power Generation Company

[Asish Chattopadhyay]

Dear Sir,

One Thermal Power Generation Company is procuring Coal from its captive mines for power generation in its Thermal power plant. Please enlighten

i) Whether Power Generation Company is entitled for claiming refund of excise duty paid under Chap Heading 2701 @ 6% and Clean energy cess additionally paid by its captive mine @ ₹ 200.00 per tonne at the time of coal removal. Electricity being non excisable item whether company is eligible to claim CENVAT as well as Clean Energy Cess refund paid for procuring Coal the major input for generation.

Regards

Asish Chattopadhyay

[JSW CEMENTLIMITED]

Power company cannot claim either refund or cenvat credit of duty and clean energy cess.

AI Summary

Cenvat credit denial: power generators cannot claim refund or Cenvat credit for duty and clean energy cess on coal Whether a thermal power company procuring coal from its captive mines for electricity production can obtain refund of excise duty and Clean Energy Cess or claim Cenvat Credit where electricity is not excisable; the forum reply states the power company cannot claim either refund or Cenvat Credit for duty and Clean Energy Cess paid on coal.