Refund of service tax on exempt cargo transport upheld; unjust enrichment rejected on documentary proof.

Refund of service tax paid on transportation of cargo from ship to shore was held admissible because the service fell within the exemption for transportation by rail or vessel of specified goods under Notification No. 25/2012-ST. The tax paid on an exempt service was therefore refundable. The bar of unjust enrichment was not applied, as the Chartered Accountant's certificate, the accounting treatment showing the amount as receivable, and the buyer's letter declining reimbursement established that the tax burden had not been passed on. The refund claim succeeded.

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Issues: Whether refund of service tax paid on transportation of cargo from ship to shore was admissible under the exemption notification, and whether the bar of unjust enrichment applied.

Analysis: The service rendered consisted of transportation of Murate of Potash from vessel to shore for consideration. The service fell within the exemption for transportation by rail or vessel of specified goods under Notification No. 25/2012-ST dated 20.06.2012, and the tax paid on such exempt service was therefore refundable. On unjust enrichment, the evidence of the Chartered Accountant's certificate, the accounting treatment showing the amount as receivable, and the buyer's letter declining reimbursement established that the tax burden had not been passed on.

Conclusion: The refund was admissible and the objection based on unjust enrichment failed; the assessee succeeded.

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