HC junks Rajasthan Rajya Vidyut Utpadan Nigam Limited's appeal on coal compensation cess
Rajasthan High Court
has dismissed an appeal by the Rajasthan Rajya Vidyut Utpadan Nigam Limited (
RVUNL
) in connection with a dispute with Adani Entreprises Limited on the issue of compensation cess.
A bench of Justices Avneesh Jhingan and Bhuwan Goyal held that RVUNL is liable to reimburse the amount paid by Adani-owned joint venture company AEL under
Clean Energy Cess
for coal mining.
Coal blocks were allotted by the Centre to RRVUNL which invited tenders to enter into a joint venture arrangement for the development and operation of coal blocks, transportation and delivery of coal to the thermal power stations of the Nigam.
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Adani Enterprises Limited
(AEL) being the successful bidder formed a joint venture company and executed a Coal Mining and Development Agreement (CMDA) for 30 years with RVUNL.
In 2010, the central government levied Clean Energy Cess (CEC) on the goods mentioned in the Tenth Schedule of the Finance Act,2010 in which coal was also one of the levied products.
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