TaxTMI 
TaxTMI 
2026 (7) TMI 764
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....e Central Goods and Service Tax Act, 2017 [CGST Act] on the ground of being time barred and hit by the principle of unjust enrichment. 2. Briefly stated the assessee is engaged in the business of providing general insurance services. The assessee had issued insurance policies to its clients and paid service tax on the premium amounts under the Finance Act, 1994 [The Act] however, subsequently they were cancelled during the GST regime on account of various reasons, such as cheque dishonour, cancellation or alteration of policy on clients request, reversal of premium due to risk reduction. As a result, the assessee refunded the proportionate premium amount along with service tax component to the clients as no service has been provided eith....
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....entral Excise, Delhi [Final Order No. 51564/2023 dated 31.10.2023] 5. It is also the case of the appellant that the claim for refund of KKC and SBC arises by reason of cancellation of the policies whereby either no service or only part of the service had been provided by the appellant and therefore they were eligible to claim refund of service tax and the cesses paid according to the proportionate premium amount. Once the refund of the service tax component has been held to be admissible by the Tribunal, the refund of KKC and SBC, which are merely constituent components of the service tax levy cannot be subjected to a different treatment. 6. The learned Authorized Representative for the Revenue has very fairly conceded that the issue ....
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....en provided (because of any reasons) then the service tax so paid is to be credit to the account of the service provider. Rule 6(3) of STR, 1994 provides that the service provider may take credit of such amount and utilise it for their subsequent liability, provided the amount for such service have been returned to the person from whom they have received. Rule 6(3) of STR, 1994 does not specify that the amount should be returned by following the provisions of Section 64VB in The Insurance Act, 1938 i.e. the returned amount should be paid to the insured only. Thus as per the provisions of Rule 6(3) of STR, 1994 and Section 142(5) of the CGST Act, 2017 compliance of the provisions of Section 64VB in The Insurance Act, 1938 is not mandatory, b....
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....roportionate to cancellation of the policy to the financer only and the financer then remits the said amount to the insured by crediting the same to its account. The Commissioner (Appeals) in its order dated 27.09.2019 has also taken note of these facts and concluded that the respondent had received premium amount from the corporate agent/financer and hence, in case of cancellation of policies, the amount proportionate to the policy cancellation has been refunded by them to the financer/agent only. We do not find any reason to differ with the view taken by the Commissioner (Appeals) specially with reference to the provisions of law relied on. We, therefore, hold that the Department is not right in invoking the principle of unjust enrichment....
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....Centre Private Limited versus Commissioner (Appeals-I) Central Tax Goods and Service Tax and Central Excise, New Delhi [Final order No.51242-53/2025 dated 27.08.2025 in S.T. Appeals No.54979-80/2025] wherein it was observed:- "10. The issue of refund in similar circumstances and the contentions raised by the learned Counsel have been considered in series of decisions by different learned Single Members, as referred above. The consistent view taken in all these decisions is that refund claim of service tax paid under the existing law (Central Excise Act, 1944) in respect of services not provided shall be disposed of under the existing law and has to be paid in cash, however such refund is subject to the provisions of sub-Section (2)....
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....ellant had issued credit notes in respect of service which is not rendered to the customers on account of cancellation of the agreement and hence there was no scope of rendering any services on which the service tax could be levied. 13. The learned Counsel for the appellant has relied on the provisions of Rule 6 of Service Tax Rules, 1994, which entitles the assessee to take the credit of such excess service tax paid by him. Rule 6 during the period 01.04.2011 to 30.06.2017 is quoted below:- "(3) Where an assessee has issued an invoice, or received any payment, against a service to be provided, which is not so provided by him either wholly or partially for any reason, or where the amount of invoice is renegotiated due to d....