Complex Power Example in Hayt Engineering Circuit Analysis
Because you haven’t changed the circuit for the load. It is still perfectly in parallel with the source voltage.  By placing the capacitor in parallel, the reactive power required by the inductor will substantially be provided by the capacitor (enough so the source provides power with a 0.95 pf).

UPDATE:  Hi 1729_SR, I simulated the circuit in ATPDraw (graphical interface for ATP) to give more clarity to the issue (power factor correction).

Here is the circuit modeled:



Below is a plot of each elements power waveform (v x i at each sample). The green is the power flowing in the load, blue is power flowing from the source, and red is power flowing in the capacitor. 


Also, below are the current waveforms (blue = source, green = load, and red = cap). 



And finally, here is a plot of the energy of each (blue = source, green = load, and red = cap).  The capacitor just absorbs and returns energy to the system.