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

AI Summary

Power company denied refund on excise duty and Clean Energy Cess for coal used in electricity generation. A thermal power generation company inquired about the possibility of claiming a refund for the excise duty and Clean Energy Cess paid on coal procured from its captive mines. The coal is used as a major input for electricity generation, which is a non-excisable item. The company sought clarification on whether it is eligible for a refund of the excise duty under Chapter Heading 2701 and the Clean Energy Cess. The response clarified that the power company is not entitled to claim either a refund or CENVAT credit for the duty and cess paid.