The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that no bar of unjust enrichment is applicable when payment is made by the appellant and allowed the refund of Service Tax.
M/s Pecon Computech Pvt. Ltd, the appellant challenged the impugned order where the Adjudicating Authority rejected their refund claim. The show-cause notice was issued to the appellant to demand Service Tax amounting to Rs.1,53,031/-. The adjudication took place and the demand for service tax was confirmed by the order.
On appeal, the Commissioner (Appeals) vide its order dropped the proceedings against the appellant. The said order was challenged before this Tribunal by the Revenue, but the said appeal was withdrawn on 27.02.2016 under National Litigation Policy.
During the pendency of the appeal, the appellant paid the disputed amount of service tax. Thereafter, the appellant filed a refund claim on 28.02.2016 as there was no demand sustainable against the appellant.
A show-cause notice was issued to the appellant for rejection of their refund claim as the refund claim is filed beyond the period of limitation and failed to pass the bar of unjust enrichment. The refund claim was rejected and on appeal, the adjudication order was confirmed.
The appellant, submitted that they have made the said payment for which they sought a refund on 20.06.2011 when the appeal filed by the Revenue was pending before this Tribunal. Later on, when this Tribunal decided the appeal under National Litigation Policy in their favour, they claimed a refund claim.
A Single member bench comprising Mr Ashok Jindal, Member (Judicial) held that “no bar of unjust enrichment is applicable in the facts and circumstances of this case, as the appellant has also made the payment for the period from 10.09.2004 to 15.06.2005 on 26.02.2011.”
While allowing the appeal, the CESTAT set aside the impugned order.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
