Unjust enrichment in refund claims defeated where evidence showed no service tax was recovered from the recipient.

Refund was held not to be barred by unjust enrichment where the appellant produced a chartered accountant's certificate stating that no service tax had been recovered from the service recipient, and the department verified that position by letter. On that basis, the burden of proving that the refund was not hit by unjust enrichment was treated as discharged. The refund claim was therefore maintainable and consequential relief followed.

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Issues: Whether the refund claim was barred by unjust enrichment.

Analysis: The appellant produced a chartered accountant's certificate stating that no service tax had been recovered from the service recipient. This was verified by the department, which confirmed the position by letter. On that basis, the burden of proving that the refund was not hit by unjust enrichment stood discharged.

Conclusion: The refund claim was held to be maintainable and the appeal was allowed with consequential relief.

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