By TIOL News Service

NEW DELHI, SEPT 12, 2017: THE appellants were providing 'Event Management' Service and entered into an agreement with Madhya Pradesh Government for providing 'Mobile Health van'.The agreement between the appellant and Madhya Pradesh government was for a fixed price and if any service tax was payable the same was to be borne by the appellant.

On the premise that activity of providing mobile health van is covered under rent-a-cab service, the appellant paid Service Tax but on receipt of letter from the Asstt. Commr. Central Excise and Service Tax Division, Bhopal that service provided by the appellant does not fall under taxable category, they filed refund claim.

The said claim was rejected on the ground that the appellant had failed to pass the bar of unjust enrichment.

Aggrieved, the appellant is before the CESTAT.

None appeared on behalf of the assessee.No adjournment was sought. As the appeal pertained to the year 2011, the Bench took up the same for consideration.

The AR submitted that the appellant had collected the amount of Service Tax from Madhya Pradesh government, therefore, bar of unjust enrichment is applicable.

The Bench observed -

"6. On perusal of the record, I find that agreement between the appellant and the MP government is for providing mobile medical van and as per the agreement price was cum service tax price. As no service tax is payable by the appellant, therefore, question of recovery of service tax from MP Government does not arise. In the circumstances, bar of unjust enrichment is not applicable to the facts of this case. Therefore, the appellant is entitled for refund claim."

The impugned order was set aside and the Appeal was allowed with consequential relief.

(See 2017-TIOL-3302-CESTAT-DEL)