Issues: Whether weld mesh manufactured exclusively as top, bottom, side, door and partition components of poultry battery cages is classifiable as parts of poultry-keeping machinery under CETH 84369100 or as iron and steel structures under CETH 73089090.

Analysis: The goods were manufactured from galvanised iron wire to specified designs and were exclusively used as identifiable components of poultry battery cages. The proposed entry for iron and steel structures covers structural articles of the nature specified therein, whereas the Revenue did not provide convincing material or reasoning showing how the specialised weld-mesh cage components fell within that entry. Reliance on an earlier decision concerning poultry equipment was misplaced, since the subsequent appellate proceedings accepted classification under CETH 84369100.

Conclusion: The declared classification under CETH 84369100 is correct; rejection of that classification and proposed classification under CETH 73089090 are unsustainable.

Issues: (i) Whether CENVAT credit on duty-paid inputs procured from units availing exemption under Notification No. 01/2010-CE was admissible before the amendment to Rule 12 effective from 20.01.2014; (ii) Whether the extended period of limitation could be invoked for recovery of the credit.

Issue (i): Whether CENVAT credit on duty-paid inputs procured from units availing exemption under Notification No. 01/2010-CE was admissible before the amendment to Rule 12 effective from 20.01.2014.

Analysis: The CENVAT credit scheme requires harmonious reading of its provisions. Credit is available where the input has suffered duty, is used in manufacture of final products or provision of output services, and is received under prescribed documents. As these conditions were undisputedly fulfilled, and the Rules contained no express pre-amendment prohibition against such credit, the later express provision could not be read as restricting credit for the earlier period.

Conclusion: CENVAT credit was admissible before 20.01.2014; this issue was decided in favour of the assessee.

Issue (ii): Whether the extended period of limitation could be invoked for recovery of the credit.

Analysis: The records had been subjected to audits, returns were regularly filed, and refund claims had been processed. Revenue produced no evidence of suppression of facts with intent to evade duty. The dispute also involved interpretation of the CENVAT Credit Rules, in which circumstances the extended period was not invocable.

Conclusion: The extended period of limitation was not invocable; this issue was decided in favour of the assessee.

Final Conclusion: The disputed input credit remains available and the demand is time-barred.

Ratio Decidendi: Where the substantive conditions for CENVAT credit are fulfilled and no express prohibition exists, a subsequent amendment expressly allowing such credit does not itself justify denial for the preceding period; extended limitation requires proof of suppression with intent to evade duty.

Issues: (i) Whether freight incurred for FOR destination sales up to the buyers' premises formed part of the assessable value for central excise duty; (ii) Whether the extended period of limitation could be invoked for the demand despite prior departmental knowledge of the freight exclusion and conflicting decisions on the place of removal.

Issue (i): Whether freight incurred for FOR destination sales up to the buyers' premises formed part of the assessable value for central excise duty.

Analysis: Under FOR destination sales, delivery occurs at the buyers' premises. Freight and transportation charges incurred up to that place are consequently includible in the assessable value. The merits issue stood covered against the assessee.

Conclusion: Freight up to the buyers' premises was includible in the assessable value; this issue was decided against the assessee.

Issue (ii): Whether the extended period of limitation could be invoked for the demand despite prior departmental knowledge of the freight exclusion and conflicting decisions on the place of removal.

Analysis: The earlier notice concerning the same exclusion of freight and cartage had already placed the material facts within the Department's knowledge. Further, conflicting decisions on the place of removal made the assessee's belief regarding non-inclusion of freight reasonably possible. The same known facts could not subsequently constitute suppression, fraud, wilful misstatement, or intent to evade duty. The entire demand was beyond the normal limitation period.

Conclusion: The extended period was not invocable and the demand was time-barred; this issue was decided in favour of the assessee.

Final Conclusion: Although freight was liable to be included in assessable value for FOR destination sales, the time-barred demand, interest and penalty could not survive.

Ratio Decidendi: Where the Department already possesses the relevant facts, their repetition in a subsequent notice cannot establish suppression for invoking the extended limitation period; a bona fide view supported by conflicting decisions also negates intent to evade duty.

Issues: Whether Cenvat credit is admissible on services, inputs and capital goods used for maintenance and operation of a fly ash pond and for loading, unloading and transportation of fly ash to the manufacturing unit, notwithstanding that such services were rendered outside the factory premises.

Analysis: Rule 2(l) of the Cenvat Credit Rules, 2004 covers services used directly or indirectly in or in relation to manufacture and includes procurement and inward transportation of inputs. Fly ash was an undisputed raw material for cement manufacture. The pond-related maintenance and extraction activities, as well as loading, unloading and freight for bringing fly ash to the factory, had a direct nexus with manufacture. The definition does not require that every eligible input service must be performed within the factory premises. The post-1 April 2011 omission of setting-up services from the inclusive portion does not exclude services otherwise covered by the principal part of the definition.

Conclusion: Cenvat credit on the disputed fly ash pond-related services, inputs, capital goods, and inward movement services is admissible. The issue is decided in favour of the assessee.

Ratio Decidendi: A service used directly or indirectly in relation to manufacture qualifies as an input service under Rule 2(l) even when performed outside the factory, unless specifically excluded.

Outcome: The appeal was dismissed for non-prosecution under Rule 20 of the CESTAT Procedure Rules, 1982.

Outcome: The appeal was dismissed for non-prosecution under Rule 20 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982.

Issues: Whether the extended period of limitation could be invoked for the excise-duty demand where the relevant facts and records had been made available during audit.

Analysis: The demand covered April 2011 to November 2013, while the audit had issued a deficiency memo on 10.03.2014 based on the assessee's records. The show-cause notice was issued only on 13.04.2016 by invoking the extended period. Availability of the material records to audit did not establish suppression or any conduct justifying invocation of the extended limitation period.

Conclusion: The extended period of limitation was not invocable; the demand raised by its invocation was time-barred and was set aside in favour of the assessee.

Issues: (i) Whether recovery of central excise duty by invocation of the extended limitation period was sustainable; (ii) Whether Nicotine Sulphate was classifiable under CTH 24039990 or CTH 29399900; (iii) Whether the manufacturer and purchaser were related parties for valuation of the goods supplied to the purchaser.

Issue (i): Whether recovery of central excise duty by invocation of the extended limitation period was sustainable.

Analysis: The manufacturer had informed the department of manufacture and classification of Nicotine Sulphate under Chapter 29 and had consistently disclosed the disputed classification in monthly ER-1 returns. The disclosed material did not support an allegation of suppression or misstatement necessary to invoke the extended period.

Conclusion: The demand for June 2015 to June 2017 issued by invoking the extended limitation period was barred by limitation, in favour of the assessee.

Issue (ii): Whether Nicotine Sulphate was classifiable under CTH 24039990 or CTH 29399900.

Analysis: The manufacturing process showed that the product was a vegetable alkaloid. Heading 29.39 covers alkaloids and their derivatives, and the Chapter 29 restriction concerning separately chemically defined compounds did not exclude this product because alkaloids are an identified exception under the HSN general notes. The report relied on by Revenue concerned a sample drawn from a third-party premises without the manufacturer's representative, tested more than a year after drawal contrary to the prescribed sampling standard, and included a classification opinion beyond the chemical examiner's analytical role. Factory samples tested subsequently described the product as an aqueous solution of Nicotine Sulphate and an organic chemical.

Conclusion: Nicotine Sulphate was correctly classifiable under CTH 29399900 and not under CTH 24039990; the consequential duty, interest and penalty were unsustainable, in favour of the assessee.

Issue (iii): Whether the manufacturer and purchaser were related parties for valuation of the goods supplied to the purchaser.

Analysis: The allegation of related-party status rested on one individual being a partner of the manufacturer and managing director of the purchaser. No supporting evidence established that the entities satisfied the statutory requirements of related persons. The valuation demand based on 110% of cost of production consequently lacked foundation.

Conclusion: The entities were not established to be related parties; the differential duty, interest and penalty on this count were unsustainable, in favour of the assessee.

Final Conclusion: The extended-period demand and the related-party valuation demand fail, while the declared Chapter 29 classification of Nicotine Sulphate prevails.

Ratio Decidendi: A disclosed tariff classification cannot attract the extended limitation period absent suppression, and Nicotine Sulphate, as a vegetable alkaloid derivative, falls under the alkaloid heading notwithstanding the general requirement of separate chemical definition in Chapter 29.

Issues: Whether CENVAT credit is admissible on steel, cement, welding electrodes and gases used in fabricating structural works and support structures connected with cement and power plants for the period before 07.07.2009.

Analysis: The materials were used for fabrication of foundations, platforms, supports, conveyor structures, galleries, pipelines, chimneys and related structures required for installation and functioning of capital goods. Their eventual embedding in earth did not negate their use, directly or indirectly, in relation to manufacture. The exclusion introduced with effect from 07.07.2009 was not clarificatory or retrospective; therefore, it could not govern credit taken before that date.

Conclusion: CENVAT credit on the specified materials used for the stated structural and support works before 07.07.2009 is admissible, in favour of the assessee.

Issues: Whether reimbursement recovered from a buyer for the amount reversed under Rule 6(3)(a)(i) of the Cenvat Credit Rules, 2004, though shown in the invoice's excise-duty column, constitutes an amount collected as representing excise duty under Section 11D of the Central Excise Act, 1944.

Analysis: The exempt goods carried no excise-duty liability. The statutory records and ER-1 returns established that the prescribed percentage of the value of exempt clearances had already been reversed under Rule 6(3)(a)(i). The agreement specifically provided for the buyer to reimburse that reversal, demonstrating that the payment was not intended or understood as excise duty. The invoice description could not override the transaction's real legal character. Section 11D targets retention of amounts collected by falsely representing them as excise duty; it did not apply to a reimbursement of an amount already reversed and accounted for under the Cenvat scheme.

Conclusion: The reimbursement was not collected as representing excise duty, and Section 11D of the Central Excise Act, 1944, was inapplicable.

Issues: (i) Whether the alleged shortage determined from estimated stock-taking and discrepancies between statutory records and physical stock established clandestine manufacture and removal without payment of duty; (ii) Whether the extended period of limitation, interest and penalty could be sustained.

Issue (i): Whether the alleged shortage determined from estimated stock-taking and discrepancies between statutory records and physical stock established clandestine manufacture and removal without payment of duty.

Analysis: Production of pig iron was recorded using yield-based conversion ratios because no post-production weighment system was available, while physical stock-taking was conducted by volumetric or eye estimation. Both methods were inherently approximate and could generate discrepancies. The Revenue produced no actual weighment report or independent evidence of unaccounted manufacture, removal, transport, purchasers, sale proceeds, excess raw-material consumption, or excess electricity consumption. A stock discrepancy based solely on estimation cannot establish clandestine removal.

Conclusion: The charge of clandestine manufacture and removal was not proved; the duty demand based on the alleged shortages was unsustainable, in favour of the assessee.

Issue (ii): Whether the extended period of limitation, interest and penalty could be sustained.

Analysis: The show cause notice invoked the extended period for the relevant period, but the Revenue established no mala fides, suppression, or intent to evade duty. The assessee's public-sector character and disclosure of the stock discrepancy further negated the basis for invoking the extended period. As the principal demand failed, penalty could not survive.

Conclusion: The extended-period demand was unsustainable and the penalty was liable to be set aside, in favour of the assessee.

Final Conclusion: Estimated stock variations and record discrepancies, without tangible corroborative evidence of illicit manufacture and clearance, cannot support an excise-duty liability or its penal consequences.

Ratio Decidendi: Clandestine removal cannot be inferred solely from estimated stock shortages or discrepancies in production and stock records; it requires tangible and corroborative evidence of unaccounted manufacture and clearance.

Issues: Whether the extended period of limitation could be invoked to recover annual differential refund amounts taken as suo motu credit.

Analysis: The self-credit for each financial year was disclosed in monthly duty-payment statements and separately intimated to the Department through letters. The Department did not dispute entitlement to the underlying refund amounts, and all material facts concerning the availment of credit were within its knowledge. No evidence established suppression, fraud, or mala fide intent to evade duty so as to justify invocation of the extended limitation period.

Conclusion: The show cause notice invoking the extended period was barred by limitation; consequently, no demand proceedings were sustainable against the assessee.

Issues: Whether service tax paid on outward freight for dispatch of final products from the factory to customers before 01.04.2008 qualified for CENVAT credit as an input service.

Analysis: Before the amendment effective from 01.04.2008, the definition of input service covered services used directly or indirectly in relation to clearance of final products from the place of removal and expressly included outward transportation from that place. As the freight was paid by the manufacturer for dispatch from its factory premises and Revenue did not dispute that factual position, the pre-amendment definition applied. The amendment substituting "from" with "upto" the place of removal did not govern the disputed period.

Conclusion: The assessee was eligible for CENVAT credit of service tax paid on outward freight charges incurred before 01.04.2008.

Issues: (i) Whether Cenvat credit was admissible on services used for fabrication, erection of pipelines, welding, cutting and flange fixing for setting up the factory after 01.04.2011; (ii) Whether the extended limitation period and penalty were invocable on the ground of suppression.

Issue (i): Whether Cenvat credit was admissible on services used for fabrication, erection of pipelines, welding, cutting and flange fixing for setting up the factory after 01.04.2011.

Analysis: Rule 2(l) covers services used directly or indirectly in or in relation to manufacture. Although the post-01.04.2011 inclusive portion no longer expressly refers to setting up, services used for establishing the factory remain covered by the main part where they have a direct nexus with manufacture, unless specifically excluded. The disputed services were not construction of a building or civil structure within the exclusion and were necessary to establish the manufacturing facility.

Conclusion: The disputed setting-up services qualified as input services and the Cenvat credit was validly availed and utilised, in favour of the assessee.

Issue (ii): Whether the extended limitation period and penalty were invocable on the ground of suppression.

Analysis: The credit formed part of the total credit disclosed in the monthly returns, and there was no legal requirement to separately disclose the nature of each service or the credit attributable to it. Non-disclosure of information not required by law could not constitute suppression or wilful misstatement. Since the credit was admissible, no intent to evade duty could be inferred.

Conclusion: The extended period was not invocable and no penalty was leviable, in favour of the assessee.

Final Conclusion: The recovery of credit, interest and penalty could not be sustained because the services had the requisite nexus with manufacture and the conditions for alleging suppression were absent.

Ratio Decidendi: Post-01.04.2011, services necessary for setting up a factory qualify as input services under the main limb of Rule 2(l) where directly connected with manufacture and not specifically excluded; absence of a statutory duty to separately disclose service-wise credit precludes an allegation of suppression.

Issues: (i) Whether penalties for short-paid central excise duty and service tax on legal consultancy services could survive where tax/duty and interest were paid before issuance of the show-cause notice; (ii) Whether service tax demand, interest and penalty concerning GTA services under reverse charge were sustainable despite revenue neutrality; (iii) Whether penalties for delayed and non-filing of ST-3 returns were sustainable.

Issue (i): Whether penalties for short-paid central excise duty and service tax on legal consultancy services could survive where tax/duty and interest were paid before issuance of the show-cause notice.

Analysis: Section 11A permits payment of duty and interest before service of notice and provides that no notice shall be served in respect of the amount so paid or penalty leviable thereon. The proviso to Section 11AC similarly excludes penalty where duty and interest are paid before issuance of the show-cause notice. The same principle was applied to the service tax paid with interest on legal consultancy services received under reverse charge.

Conclusion: The penalties under Section 11AC of the Central Excise Act, 1944 and Section 78 of the Finance Act, 1994 relating to these pre-notice payments were set aside, in favour of the assessee.

Issue (ii): Whether service tax demand, interest and penalty concerning GTA services under reverse charge were sustainable despite revenue neutrality.

Analysis: Revenue neutrality does not extinguish the statutory liability to pay service tax; it bears upon invocation of the extended limitation period. The show-cause notice was issued within the normal limitation period under Section 73(1). Although the tax paid could have been taken as Cenvat credit, the revenue-neutral position negated an inference of intent to evade payment, which is essential for penalty under Section 78.

Conclusion: The GTA service tax demand and consequential interest were sustained, but the penalty under Section 78 of the Finance Act, 1994 was set aside, partly in favour of the assessee.

Issue (iii): Whether penalties for delayed and non-filing of ST-3 returns were sustainable.

Analysis: The liabilities imposed for delayed and non-filing of returns were civil and remedial in character. Establishment of mens rea was not necessary upon proof of default in compliance with the return-filing requirement.

Conclusion: The penalties under Section 70 of the Finance Act, 1994 read with Rule 7C of the Service Tax Rules, 1994 were sustained, against the assessee.

Final Conclusion: The excise and service-tax penalties totalling Rs. 2,72,354 were deleted, while the tax demands, interest liabilities and return-filing penalties remained operative.

Ratio Decidendi: Payment of duty or tax with interest before a show-cause notice bars the corresponding penalty where the governing provision so provides; revenue neutrality does not eliminate a timely raised tax demand but may negate the requisite intent to evade for penal liability.

Issues: (i) Whether Sulphuric Acid cleared without payment of duty under Notification No. 12/2012-CE dated 17.03.2012 by following the Central Excise (removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001 can be treated as "exempted goods" within the meaning of Rule 2(d) of the CCR, 2004 and attract obligations under Rule 6 of the CCR, 2004? (ii) Whether the impugned Order-in-Appeal was sustainable despite earlier Final Orders in the assessee's own case on identical facts, merely because one such order had been challenged before the High Court? (iii) Whether the demands, interest and penalties were sustainable on limitation?

Issue (i): Whether Sulphuric Acid cleared without payment of duty under Notification No. 12/2012-CE dated 17.03.2012 by following the Central Excise (removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001 can be treated as "exempted goods" within the meaning of Rule 2(d) of the CCR, 2004 and attract obligations under Rule 6 of the CCR, 2004?

Analysis: The notification grants a transaction-specific and conditional duty-free clearance, contingent on compliance with the statutory end-use procedure. Sulphuric Acid retains its dutiable character because the same product is also cleared on payment of duty. The prescribed procedure preserves revenue safeguards and permits recovery upon breach by the recipient; consequently, such conditional removals are not equivalent to clearances of inherently exempt goods. The principle applicable to conditional Chapter X-type clearances was held applicable to the notification scheme.

Conclusion: Such conditional clearances are not exempted goods under Rule 2(d) of the Cenvat Credit Rules, 2004; Rule 6 obligations, including credit reversal or payment under Rule 6(3), do not arise. This conclusion is in favour of the assessee.

Issue (ii): Whether the impugned Order-in-Appeal was sustainable despite earlier Final Orders in the assessee's own case on identical facts, merely because one such order had been challenged before the High Court?

Analysis: Earlier Tribunal orders concerning the same assessee, product, notification and legal question consistently excluded the application of Rule 6. No factual distinction, statutory amendment, contrary superior-court ruling, or stay order was shown. Mere filing or pendency of an appeal does not suspend the operative force of the decision under challenge.

Conclusion: The earlier Tribunal orders remained binding and had to be followed; the impugned order was unsustainable. This conclusion is in favour of the assessee.

Issue (iii): Whether the demands, interest and penalties were sustainable on limitation?

Analysis: The clearances were made through the prescribed statutory procedure and disclosed in ER-1 returns. The Department had access to the relevant records, and the dispute was interpretative and repeatedly litigated. The material did not establish fraud, collusion, wilful misstatement, or suppression necessary for the extended period.

Conclusion: The extended period was unavailable, and the demands were independently time-barred; consequential interest and penalties could not survive. This conclusion is in favour of the assessee.

Final Conclusion: Conditional, end-use based duty-free clearances of an otherwise dutiable product do not trigger the Rule 6 mechanism, and consistent operative precedent on identical facts must be applied.

Ratio Decidendi: A conditional, transaction-specific duty-free removal under a statutory end-use procedure does not render an otherwise dutiable product "exempted goods" for applying the Cenvat credit reversal mechanism.

Issues: Whether Minute Maid Nimbu Fresh is classifiable as lemonade under Tariff Item 2202 10 20 or as a fruit pulp or fruit juice based drink under Tariff Item 2202 90 20.

Analysis: The Larger Bench ruling governing the identical product was applied. That ruling treats beverages containing lime or lemon juice of not less than 5% and total soluble solids of not less than 10% as fruit juice based drinks, based on common parlance and the applicable food regulations. The Revenue's proposed classification as lemonade was therefore inconsistent with the binding tariff-classification principle.

Conclusion: Minute Maid Nimbu Fresh is classifiable under Tariff Item 2202 90 20 as a fruit pulp or fruit juice based drink, in favour of the assessee.

Ratio Decidendi: A beverage satisfying the prescribed fruit-content and soluble-solids criteria is classifiable as a fruit juice based drink rather than lemonade.

Issues: (i) Whether duty paid through CENVAT credit, instead of cash or PLA, could be demanded again where duty was paid belatedly; (ii) Whether equivalent penalty under Rule 25 was sustainable.

Issue (i): Whether duty paid through CENVAT credit, instead of cash or PLA, could be demanded again where duty was paid belatedly.

Analysis: Payment of duty through CENVAT credit was valid and could not be required to be paid again in cash or through PLA. A delay in payment attracted only interest for the period of default.

Conclusion: The assessee was liable only for interest of Rs. 22,457 and not for a fresh cash payment of the duty.

Issue (ii): Whether equivalent penalty under Rule 25 was sustainable.

Analysis: There was no fraud, wilful misstatement, suppression of facts, or intent to evade duty. The earlier appellate order had also treated the contravention as warranting penalty under Rule 27 rather than Rule 25.

Conclusion: The equivalent penalty under Rule 25 was not sustainable; the assessee was liable to a penalty of Rs. 5,000 under Rule 27.

Final Conclusion: Delayed discharge of duty through valid CENVAT credit use attracts interest, while absence of culpable intent confines the penalty to the prescribed procedural penalty.

Ratio Decidendi: Duty validly paid through CENVAT credit cannot be re-demanded in cash merely because of delayed payment; absent fraud, suppression, wilful misstatement, or intent to evade duty, an equivalent penalty is not imposable.

Issues: (i) Whether availment of Cenvat credit in statutory returns violated Condition No. 25 of Notification No. 12/2012-CE; (ii) Whether non-utilisation or subsequent reversal/lapse of credit restored eligibility for concessional duty; (iii) Whether the differential-duty demand, interest and penalty, including invocation of the extended period, were sustainable.

Issue (i): Whether availment of Cenvat credit in statutory returns violated Condition No. 25 of Notification No. 12/2012-CE.

Analysis: Condition No. 25 required that no Cenvat credit of duty on inputs or service tax on input services be taken. The condition concerns the act of taking credit, rather than its utilisation. Credit recorded and availed in ST-3 and ER-1 returns constituted availment under the statutory scheme. As an exemption condition, the requirement was subject to strict construction and the claimant bore the burden of proving compliance.

Conclusion: Availment of Cenvat credit violated Condition No. 25 and disentitled the assessee to the concessional duty rate.

Issue (ii): Whether non-utilisation or subsequent reversal/lapse of credit restored eligibility for concessional duty.

Analysis: Non-utilisation did not negate the completed act of taking credit. Migration of credit during transition to GST, its lapse, or a later reversal could not retrospectively cure the breach that arose when credit was simultaneously availed with the concessional excise-duty benefit. The decisions concerning reversal of credit were inapplicable to the strict eligibility condition governing the exemption.

Conclusion: Non-utilisation, later reversal, or lapse of credit did not restore the assessee's eligibility for concessional duty.

Issue (iii): Whether the differential-duty demand, interest and penalty, including invocation of the extended period, were sustainable.

Analysis: The discrepancy was detected in audit, and filing returns did not excuse wrongful availment of the concession despite prohibited credit availment. The extended period was consequently available. Upon the resulting short payment of duty, interest followed under the statutory provision, and penalty was warranted for availing the concessional rate despite ineligibility.

Conclusion: The differential-duty demand, extended-period invocation, interest and penalty were sustainable against the assessee.

Final Conclusion: The concessional excise-duty exemption was unavailable where Cenvat credit had been taken during the relevant period, and the consequential fiscal liabilities remained enforceable.

Ratio Decidendi: Where an exemption notification requires that no Cenvat credit be taken, recording and availing credit itself breaches the condition; non-utilisation, reversal, lapse, or subsequent GST transition cannot cure that breach retrospectively.

Issues: (i) Whether unjust enrichment applies where the contract price is inclusive of service tax; (ii) Whether unjust enrichment applies where service tax was separately invoiced but was not paid by the service recipient.

Issue (i): Whether unjust enrichment applies where the contract price is inclusive of service tax.

Analysis: Under the refund regime, a claimant must establish that the tax burden has not been passed on. Where the agreed contract value is inclusive of all taxes and no separate service-tax amount is recoverable from the recipient, any variation in tax liability does not alter the contracted consideration. The service provider consequently bears the tax incidence.

Conclusion: The bar of unjust enrichment does not apply; the assessee has borne the incidence of service tax and is entitled to refund.

Issue (ii): Whether unjust enrichment applies where service tax was separately invoiced but was not paid by the service recipient.

Analysis: The chartered accountant's certificate and the records established that, although service tax was shown separately in invoices, the service recipient did not remit that amount. The tax was therefore borne by the service provider rather than passed on to the recipient.

Conclusion: The bar of unjust enrichment does not apply; the assessee has borne the incidence of service tax and is entitled to refund.

Final Conclusion: Refund of service tax paid on the non-taxable services is legally available because the tax incidence was not passed to the service recipients.

Ratio Decidendi: A service-tax refund is not defeated by unjust enrichment where the contractual price is tax-inclusive, or where separately invoiced tax has not been recovered from the recipient, provided the claimant establishes that it bore the tax incidence.