No ITC on compensation cess for electricity supplied to employee township

Bharat Aluminum Company Limited Vs State of Chhattisgarh (Chhattisgarh High Court) Conclusion: ITC for Compensation Cess was not permissible for electricity generated and supplied to an employee township as electricity used for residential townships constituted a welfare activity outside the business ambit. Moreover, the amendment to Explanation 1(d) of Rule 43 of the CGST Rules, 2017, effected vide Notification No. 14/2022 – Central Tax dated 05.07.2022, was prospective in nature, therefore, any claim for ITC made in respect of periods antecedent to the notification could not be sustained. ...