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Time of India
27-05-2025
- Business
- Time of India
Utpadan Nigam loses case, to pay 740 crore compensation to Adani
Jaipur: Rajasthan High Court recently dismissed an appeal filed by Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) against the demand of Rs 740 crore compensation cess on coal rejects by Parsa Kante Collieries Ltd (PKCL), which earlier received favourable orders from an arbitral tribunal and a commercial court. PKCL, a joint venture between Adani Enterprises Ltd (74%) and RVUNL (26%), was formed to mine coal from Rajasthan's blocks in Chhattisgarh, allotted by the Centre. In 2010, the central govt levied a clean energy cess (CEC) on coal, which RVUNL was paying as per the conditions in the Coal Mining and Development Agreement (CMDA). However, a dispute between PKCL and RVUNL arose after the introduction of GST in 2017, wherein the CEC was replaced by a compensation cess. "This issue arose between the parties in 2017, wherein RVUNL was in dispute with PKCL. But PKCL was awarded Rs 740 crore by the Arbitral Tribunal, which was upheld by the Rajasthan High Court," said Nilava Bandyopadhyay, senior partner, S&A Law Offices. Upholding the contention of the Adani company, the arbitrator said RVUNL is liable to reimburse compensation cess to them on the entire coal mined. The objections filed by the RVUNL under Section 34 of the Arbitration and Conciliation Act were rejected by the commercial court, which held that the view taken by the arbitrator was a plausible one. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Transformez les idées novatrices en stratégies d'investissement eToro Market Updates En savoir plus Undo Following this, the RVUNL approached the high court. While dismissing RVUNL's appeal, the high court bench held, "The argument that reimbursable shall include only those taxes for which the Nigam has a statutory liability to pay has a lacuna." The bench observed that the conclusion of the arbitrator is based upon a reasonable construction of the terms of CMDA and is plausible.
Time of India
26-05-2025
- Business
- Time of India
HC junks Rajasthan Rajya Vidyut Utpadan Nigam Limited's appeal on coal compensation cess
The 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. 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.
Time of India
25-05-2025
- Business
- Time of India
HC junks Rajasthan Rajya Vidyut Utpadan Nigam Limited's appeal on coal compensation cess
The 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Women From The 90's That Still Turn Heads Reportingly Undo 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. Live Events
