Case Law Details
In re Maharashtra State Mining Corporation Limited (GST AAR Maharashtra)
Maharashtra State Mining Corporation Limited filed an application under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 seeking an advance ruling on four issues. The questions related to the GST rate applicable on invoices raised for delivery of Beneficiated (Washed Coal) to MAHAGENCO; whether the transaction should be invoiced at 18% for the entire transaction or with separate treatment of 5% (RCM) / 12% for transportation and 18% for beneficiation and loading services; whether MAHAGENCO could charge Compensation Cess on sale of coal rejects to the applicant despite Notification No. 2/2018–Compensation Cess dated 26 July 2018 providing for NIL Compensation Cess on certain coal rejects; and whether the applicant should charge Compensation Cess on sale of rejects to contractors in a chain of back-to-back transactions.
The applicant, through an email dated 12.05.2026, informed the Authority that the purpose for which the advance ruling had been sought had been resolved. The applicant stated that it no longer wished to seek clarification on the questions raised and expressed its intention to voluntarily withdraw the application filed on 13.02.2021. The Authority allowed the request for voluntary and unconditional withdrawal without examining the merits or detailed facts of the case. Accordingly, the application was disposed of as withdrawn.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING MAHARASHTRA
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] M/s. MAHARASHTRA STATE MINING CORPORATION LIMITED, the applicant is seeking an advance ruling in respect of the following questions.
Q.1 Which rates of GST should be applied in the invoice raised for delivery of Beneficiated (Washed Coal) to MAHAGENCO?
Q.2 Whether the Invoice should be for 18% for the entire transaction or 5% (RCM) / 12% for ward charge for transportation and 18% for the beneficiation and loading services under the agreement?
Q.3 In spite of the notification dated 2/2018- Compensation Cess dated 26th July 2018 regarding charging NIL Compensation cess on Coal rejects supplied by a coal washery, arising out of coal on which compensation Cess has been paid and no input tax credit thereof has been availed by anyone, Can MAHAGENCO charge Compensation cess on sale of rejects to the Applicant company i.e. MAHARASHTRA State MINING CORPORATION LTD (MSMC) applicant company?
Q.4 IN the chain of back-to-back transactions, should the applicant company charge Compensation cess on sale of rejects to the contractors?
The applicant, vide email dated 12.05.2026, stated that purpose for which the advance ruling was sought is resolved and so they do not wish to seek any clarification on the question raised and have expressed their intention to voluntarily withdraw the same. Accordingly, they have requested permission to withdraw the subject application filed on 13.02.2021.
The request of the applicant to withdraw their application voluntarily and unconditionally is hereby allowed, without going into the merits or detailed facts of the case.
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
