2016 (10) TMI 1096 - AT - Service Tax

Refund claim - unjust enrichment - tax paid on Chit Fund activity which was not taxable - Held that - When there is no taxability there shall not be any leviability. When Revenue did not make any verification from any chit subscriber or from any record available at their disposal there cannot be any presumption of undue enrichment by the appellant - refund allowed - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, stating that the Chit Fund activity was not taxable. The appellant was granted a refund of Rs. 3,63,708/- as the test of unjust enrichment did not apply since no service tax was collected from chit subscribers. The denial of refund was deemed unsustainable, and the appeal was allowed.