Compensation cess on input

This discussion clarifies whether a brick field owner can claim compensation cess on coal purchased for brick production, even though there's no cess on the final brick product. The consensus is yes, the cess can be claimed as input tax credit. However, as there's no corresponding cess liability on outward supplies (bricks), this accumulated cess cannot be utilised against other tax liabilities and will ultimately be treated as a purchase cost, adding to direct expenses.