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2022 (2) TMI 197 - AT - Service TaxRefund of service tax paid - rejection on the ground of failure to cross the bar of unjust enrichment - HELD THAT:- Most of the cost of tax is actually passed on to the buyers but such shifting the burden if remains backward then the cost of tax is borne by those who are engaged in producing the product. Example of such “Shifting and Incidence”, as noted in the Encyclopaedia, was lowering wages and salaries, lowering price of raw materials or a lower return on borrowed capital. However, in some cases tax may not be shifted at all and the payer bears the burden. Example of such incidence is stated in the said paragraph as reducing the net income of the business owner by way of reducing the business benefit. It is difficult to understand from where he borrowed this inference that ultimate incidence of all taxes shifts from business to the consumer and mere reflection of the same in the books of account (perhaps he meant thereby receivable) does not reflect actual shifting of incidence. No prudent man would concur to his finding that is based on erroneous understanding of simple English sentence available in the Encyclopaedia Britannica strangely he equated “most of the cost of tax” with “all taxes”. Therefore, the reasoning in his order on failure of the Appellant to pass the burden of unjust enrichment appears to be erroneous. Appeal allowed.
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