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2016 (2) TMI 545 - AT - Service TaxRefund of service tax on the basis of credit note - value of services provided (sharing of expenses) earlier got reduced as per the mutual agreement - whether there has been excess payment of tax and whether the bar of unjust enrichment will arise in relation to such excess payment of tax. - The original authority rejected the claim for refund on the ground that such a reduction did not appear to have extended beyond the second component of the compensation, i.e. the share in expenses, in the service agreement. Held that:- The charges levied from M/s Nicholas Piramal India ltd by the appellant are amply evident in the debit notes pertaining to the quarter April 2007 and September 2007. It cannot but be accepted that the credit note issued in October 2007 is intended to reduce the amounts payable by the client to the appellant to the extent of ₹ 2,93,50,000/-. The contention of the learned Chartered Accountant that any payment can be released only after withholding of tax deducted at source is borne out by the lesser amounts entered in the ledger and the bank statements. We find no flaw in this contention and there is no counter by Revenue that can contest this. Regarding unjust enrichment - Re-negotiation after initial payments does not, in any way, weaken the claim of the appellant because the fact of reduced net consideration is incontrovertible; the transaction does not extend to a chain beyond the appellant and M/s Nicholas Piramal and therefore, it can be deduced that the incidence of tax has had no scope of being passed on. - Refund allowed - Decided in favor of assessee.
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