Last month's victory by Marks & Spencer in the long-running 'teacake' affair could open the door for other businesses to claim VAT refunds where the tax has been wrongly charged.rnThe House of Lords backed a decision by the European Court that the retailer has been treated unfairly by HM Revenue & Customsrnin not being refunded ￡3.5m in wrongly paid VAT. The battle originally centred on whether a chocolate-covered teacake should be a VAT-payable biscuit or a VAT-free cake.rnHMRC had argued a refund would amount to 'unjust enrichment' as M&S would not pass the VAT back to customers.rnHMRC has now said that the unjust enrichment defence will no longer be used against any claim made before 26 May 2005, when the law changed.
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