Unjust enrichment and service tax refund did not bar recovery where contracts were tax-inclusive and exemption was later restored.

Refund of service tax paid on construction services during the period when an exemption for services to Government bodies was temporarily withdrawn and later restored was held not to be barred by unjust enrichment. The refund provision under Section 102 was treated as intended to return tax collected in that transitional period, and the contracts were found to be tax-inclusive, so the incidence of tax had not been passed on in a manner attracting unjust enrichment. The Revenue's challenge therefore failed.

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Issues: Whether refund of service tax paid for the financial year 2015-16, arising from the withdrawal and later restoration of exemption for services provided to Government bodies, was hit by unjust enrichment.

Analysis: The refund claim arose from tax paid on construction services after the exemption was temporarily omitted and before it was restored. The refund provision under Section 102 was intended to return service tax paid in such circumstances. The contracts were found to be inclusive of taxes, so the incidence of tax had not been passed on in a manner attracting unjust enrichment.

Conclusion: The refund was not barred by unjust enrichment and the Revenue's challenge failed.

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