A taxpayer who is running a brick field. he purchased coal for making bricks. my query is - 1. can he claim compensation cess on purchase of coal because there is no cess on bricks. 2. so if he will claim the cess on purchase then he can not use that cess for his outward supply and it will be collect in his credit ledger.
cess input can be adjusted only against cess output. as in your case there is no cess output , so ultimately it will be your purchase cost & can be transfer to direct expenses