TMI Blog2016 (2) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said amounts included service tax component at the applicable rates. It transpired that the appellant, after discussions with the client on 25 th September 2007, agreed for reduction in charges by ₹ 2,93,50,000/- for the period covered by the two debit notes issued earlier. Accordingly, a credit note for ₹ 3,29,60,050/- dated 10 th October 2007 was issued by the appellant. On the service tax component covered in the credit note, the appellant sought refund on account of over payment of tax. 4. 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. Moreover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebit notes or the credit notes owing to the statutory requirement to deduct tax at source for which certificates were produced. Further, decisions of the Tribunal in Commissioner of Central Excise Service Tax v. Standard Chartered Bank [2006 (3) STR 751 (Tri-Bang.)] in support of the contention that tax is leviable only on actual receipts, Shiva Analyticals (I) Ltd. v. Commissioner of Service Tax, Bangalore [2007 (7) STR 35 (Tri. - Bang.)] which relied upon the decision of the Hon'ble Supreme Court in Mohd Ekram Khan and Sons v Commissioner of Trade Tax, UP [2004 (6) SCC 1083 SC] as well as Siltap Chemicals Ltd. v. Commissioner of Central Excise, Vadodara II [2007 (7) STR 610 (Tri. Mumbai)] approving the adequacy of credit notes a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 9. We also note that the decisions of the Tribunal cited by the learned Chartered Accountant clearly bring out the judicial pronouncements by which the bar of unjust enrichment will not operate even if the transactions are by debit and credit notes. It is also worth mentioning that there are only two instalments in which the claim of excess payments by M/s Nicholas Piramal Ltd has been made. Re-negotiation af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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