https://www.taxtmi.com/caselaws?id=457007 Karnataka HC determined that a power company (KPCL) had no entitlement to claim value of coal rejects generated during coal washing as set-off against amounts owed to suppliers. The court held that KPCL purchased only finished washed coal at predetermined prices, not raw coal, and contract provisions regarding reject disposal were solely for environmental compliance. By-products from processing belong to the processor, not the purchaser of finished goods. The HC affirmed the Commercial Court's finding denying KPCL's claim over coal rejects but modified interest rate from 18% to 12.5% per annum on amounts due to plaintiffs. Appeals allowed in part. en-us Thu, 22 Jul 2021 00:00:00 +0530 Fri, 30 Aug 2024 19:01:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457007 Karnataka HC determined that a power company (KPCL) had no entitlement to claim value of coal rejects generated during coal washing as set-off against amounts owed to suppliers. The court held that KPCL purchased only finished washed coal at predetermined prices, not raw coal, and contract provisions regarding reject disposal were solely for environmental compliance. By-products from processing belong to the processor, not the purchaser of finished goods. The HC affirmed the Commercial Court's finding denying KPCL's claim over coal rejects but modified interest rate from 18% to 12.5% per annum on amounts due to plaintiffs. Appeals allowed in part. Case-Laws Indian Laws Thu, 22 Jul 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457007