Refund is not hit by doctrine of unjust enrichment where contract value is inclusive of Service tax and same has not been charged separately by the service provider
In the instant case, AP. Engineers (the Assessee) filed a refund claim of Service tax which was rejected by the Adjudicating Authority as hit by doctrine of unjust enrichment. On appeal being made to the Commissioner (Appeals), the Commissioner (Appeals) granted the refund claim after observing that:
Thereafter, against the order of the Commissioner (Appeals), the Revenue preferred an appeal before the Hon’ble CESTAT, New Delhi.
It was held by the Hon’ble CESTAT, New Delhi that when the contract with the client was inclusive of all the taxes, the tax variation, being not a part of the contracted value, would not result in any unjust enrichment of the Assessee. Hence, the appeal filed by the Revenue was dismissed.
(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: firstname.lastname@example.org)