Case Law Details
The Madras Club Vs. Commissioner of G.S.T. & Central Excise (CESTAT Chennai)
The issue under consideration is regarding rejection of claim for refund of the service tax under Section 11B.
The Appellant, M/s. The Madras Club is registered with the Service Tax Department for providing membership of Club or Association Service. The authority issued an Order demanding the Service Tax on the subscription amount received by the appellant from its members.
CESTAT states that, a refund could be granted if the conditions laid down under Section 11B are satisfied and the primary condition is the principle of unjust enrichment. There has also been an admission that as and when the refund is obtained, the duty element collected from its customers would be paid back. By this safe play, the appellant has ensured itself no loss since the same has been recovered and it has come in appeal by taking a chance. Therefore, CESTAT held that the appellant has passed on the tax element to its service recipient, the refund of which is not made as on date, coupled with the appellant’s claim for refund of “tax” clearly attracts the principles of unjust enrichment and hence cannot be entertained. The lower authority has therefore rightly rejected which action does not call for any interference.
FULL TEXT OF THE CESTAT JUDGEMENT
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