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Clean energy cess

CA Ramsai N (Fresher) (594 Points)

17 May 2013

Please clarify on the following issue

X cement Ltd purchasing coal from The Singareni collieries Company Ltd for producing energy to use for their own paln.

As "Circular 01/2010 on Clean Energy Cess", The Singareni collieries Company Ltd is charging Clean Energy Cess in their Sales invoice to X Cement Ltd

Query:: In circular it was mentioned that "Finance Minister had announced the imposition of Clean Energy Cess as a duty of excise on coal, lignite and Peat".

If so that clean energy cess is part of Excise duty, is X cement Ltd can avail the CENVAT input on payment of Clean energy Cess?? (Buyer)

Thanks in advance

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Z ( ) (2965 Points)
Replied 17 May 2013

The above is already covered under Partially exempted goods E/N 12/2012 and it is already included in exempted goods as per Rule 2(d) and therefore no credit shall be allowed

Credit can be taken of those duties or components of duties which are specified under rule 3 but clean energy cess is not covered

Therefore Credit can not be availed

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