The AAR, Chhattisgarh in the matter of M/s Parsakente Collieries Limited [Advance Ruling No. STC/AAR/08/2021 dated December 17, 2021] has ruled that a nil rate of Compensation Cess is applicable on the supply of coal rejects by the coal washery, as long as it arises from the raw coal on which appropriate Compensation Cess has been paid during the supply and where no Input Tax Credit (“ITC”) of the Compensation Cess so paid is availed, in terms of Sl. 41A of Notification No. 1/2017- Compensation Cess dated June 28, 2017 (“the Compensation Cess Rate Notification”).