Refund of service tax on works contract material component upheld, with unjust enrichment not proved on the record.

Refund of service tax attributable to the material component of a works contract was held admissible because the documentary record, including bills, invoices and a Chartered Accountant's certificate, supported the valuation adopted and the material portion was found deductible under Notification No. 12/2003-ST. The bar of unjust enrichment was not established because the books of account and certificate showed the amount as receivable and not passed on to customers. The Revenue's appeal therefore failed.

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Issues: Whether refund of service tax paid on the material component of works contract was admissible, and whether the bar of unjust enrichment was attracted.

Analysis: The respondent had executed works contract services and claimed refund only to the extent of service tax attributable to the material component of the contract. The documentary record, including bills, invoices and the Chartered Accountant's certificate, supported the working of material value at 55% of the contract value. The benefit of Notification No. 12/2003-ST dated 20.06.2003 could not be denied on the facts found, and the valuation material also supported deduction of the material portion. On unjust enrichment, the books of account and the certificate showed that the amount was treated as receivable and had not been passed on to customers.

Conclusion: The refund claim was admissible and the bar of unjust enrichment was not established. The appeal of the Revenue failed.

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