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S. VAIDYANATHAN, C. SARAVANAN
State of Tamil Nadu rep. by the Secretary to Government, Chennai – Appellant
Versus
Tvl. Speed Exports, Rep. by its Proprietor, Chennai – Respondent
JUDGMENT
(Prayer: Writ appeal as against the order dated 09.02.2017 passed in W.P. No. 33151 of 2016)
S. Vaidyanathan, J. & C. Saravanan, J.
1. Learned Government Advocate (T) for the petitioners submits that as of now, the issue is covered as per the decision of the Division Bench of this Court in State of Tamil Nadu and another V. M/s. Everest Industries Limited in W.A. Nos. 1260 of 2017 etc batch vide order dated 31.03.2022.
2. The relevant portions of the judgment of the Division Bench, by which the aforesaid writ appeals were disposed of are as hereunder:
"143. The second question which may possibly arise is, whether "unjust enrichment" would apply to taxes paid on raw material and captively consumed in the manufacture of finished goods within the State. The said question stands resolved by the decision of the Hon-ble Supreme Court in the case of Union of India and others vs. Solar Pesticides Private Limited and another reported in (2000) 2 SCC 705 in which, while holding that the doctrine of “unjust enrichment“ would apply to duty paid on raw materials and captively consumed, it was held that "passing of incidence of duty to any other person may be direct such as when the g
The doctrine of unjust enrichment applies to taxes paid on raw material and capital goods used in the manufacture of finished goods, and the period of limitation for claiming a tax refund is three ye....
The main legal point established in the judgment is that the principle of unjust enrichment is not applicable when a deposit is made without any statutory provision, as in the absence of a provision ....
Adjustment of service tax payments can only occur through a formal refund claim under Section 11B, and the claimant must prove that the tax burden has not been passed to third parties.
A claim for tax refund requires proof that the burden was not passed on to consumers, and failure to protest payments undermines the claim.
Refund claims for amounts paid under mistaken law must be honored, particularly when tax liability is later recognized as non-existent, overriding strict procedural limitations.
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