The Hindu (Tamil Nadu) ·
State need not refund tax collected by mistake if payer has recovered the amount from others: Madras High Court
Justices R. Anita Sumanth and C. Kumarappan hold so while partly allowing an appeal filed by the Madras Club seeking refund of service tax
A recreation club cannot seek the refund of tax collected from it by the State under a mistaken impression, if the club had already passed on the burden of paying that tax to its members and recovered the money from them, the Madras High Court has ruled.
A Division Bench of Justices R. Anita Sumanth and C. Kumarappan held that the plea of unjust enrichment could not be raised against the State, as the retention of mistakenly collected tax would ultimately be used only for the benefit of the people at large.
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