CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD REGIONAL BENCH - COURT NO. – I Excise Appeal No. 30513 of 2019 (Arising out of Order-in-Original No.HYD-EXCUS-AUDIT-COM-33-18-19 dated 31.01.2019 passed by Commissioner of Customs, Central Excise & Central Tax, Hyderabad)

M/s Singareni Collieries Company Ltd., .. APPELLANT Singareni Bhavan, Red Hills, P.B.No. 18, Khairatabad, Hyderabad, Telangana – 500 004.

VERSUS Commissioner of Central Tax .. RESPONDENT Audit-II, Hyderabad - GST Kendriya Shulk Bhavan, L.B. Stadium Road, Basheerbagh, Hyderabad, Telangana – 500 004.

AND Excise Appeal No. 30237 of 2024 (Arising out of Order-in-Original No.HYD-EXCUS-004-COM-030-2023-24 dated

29.11.2023 passed by Commissioner of Central Tax, Hyderabad)

M/s Singareni Collieries Company Ltd., .. APPELLANT Singareni Bhavan, Red Hills, P.B.No. 18, Khairatabad, Hyderabad, Telangana – 500 004.

VERSUS Commissioner of Central Tax .. RESPONDENT Rangareddy – GST H.NO. 1-98/7/43, VIP Hills, Jaihind Enclave, Madhapur, Hyderabad, Telangana – 500 081.

APPEARANCE:

Shri Ashwani Pahwa, CA for the Appellant.

Shri K. Raji Reddy, Authorised Representative for the Respondent.

CORAM: HON’BLE Mr. A.K. JYOTISHI, MEMBER (TECHNICAL)

HON’BLE Mr. ANGAD PRASAD, MEMBER (JUDICIAL)

FINAL ORDER No. A/30212-30213/2025 Date of Hearing:11.04.2025 Date of Decision:24.06.2025 [ORDER PER: A.K. JYOTISHI]

M/s Singareni Collieries Company Ltd., (hereinafter referred to as appellant) are in appeal against the order of the Commissioner dated 31.01.2019 (impugned order). The Adjudicating Authority decided the show cause notice issued by the Department, interalia, demanding Clean Environment Cess (Cess) of Rs. 2,35,29,71,776/- in respect of the closing stock of coal lying with them as on 30.06.2017 i.e. 5882429.44 MT. This demand was based on certain investigation wherein it was noticed that they had not paid Cess in respect of the stock lying with them as on 30.06.2017.

2. The Adjudicating Authority has, interalia, examined the provisions of leviability of Cess in terms of Finance Act. 2010 and Clean Environment Cess Rules, 2010. He also examined the applicability of Notification No. 12/2017- CE dated 30.06.2017 and held that the said exemption was available only to the duty of excise leviable thereon under the provisions of Central Excise Act and subject to fulfilment of two conditions which are i) the goods should have been manufactured on or before 30.06.2017 but not cleared before 01.07.2017 from the factory of production and ii) appropriate goods and service tax shall be payable on the clearance made on or after 01.07.2017 and therefore it was felt that the said notification does not exempt “Cess” on said balance of coal. Therefore, denied the applicability of said notification in respect of closing stock as on 30.06.2017 as being not relevant for the purpose of exemption to Clean Environment Cess. One of the reasons cited for denial was that there is no notification parallel to Notification No. 12/2017-CE dated 30.06.2017 in respect of Cess liability occurred on the closing stock as on 30.06.2017 even though the appellant explained that Cess is nothing but Central Excise Duty.

3. The Learned CA has submitted that while they are otherwise also covered within the purview of Notification No. 12/17-CE as Cess is nothing but excise duty. However, he is now mostly arguing that in terms of amendment brought by way of Finance Act 2024, whereas the Notification 12/2017 dated 30.06.2017 has been retrospectively amended to the effect that even Clean Environment Cess was also brought under the purview of the said exemption notification subject to another additional condition stipulating that appropriate goods and service tax compensation Cess, wherever applicable, will also be payable if cleared on or after 01.07.2017 as leviable on such goods. Therefore, now the said retrospective amendment consequentially cover their goods as all the clearances effected post

01.07.2017 have suffered applicable GST as