The appellant paid service tax under protest and filed a refund ...

Taxpayer wins refund of service tax paid to members' club based on mutuality principle.

Case Laws     Service Tax

October 16, 2024

The appellant paid service tax under protest and filed a refund claim, which was not barred by limitation. The Supreme Court in West Bengal vs Calcutta Club Limited held that the principle of mutuality exempts clubs from service tax on amounts collected from members. The doctrine of unjust enrichment is inapplicable. The appellant is eligible for refund of service tax paid along with interest. The Appellate Tribunal upheld the order and dismissed the Revenue's appeal.

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