diff --git a/common/djangoapps/entitlements/api/v1/tests/test_views.py b/common/djangoapps/entitlements/api/v1/tests/test_views.py
index e508fbffed..44b5086b33 100644
--- a/common/djangoapps/entitlements/api/v1/tests/test_views.py
+++ b/common/djangoapps/entitlements/api/v1/tests/test_views.py
@@ -475,3 +475,51 @@ class EntitlementEnrollmentViewSetTest(ModuleStoreTestCase):
             assert not CourseEnrollment.is_enrolled(self.user, self.course.id)
             assert course_entitlement.enrollment_course_run is None
             assert course_entitlement.expired_at is not None
+
+    @patch('entitlements.api.v1.views.CourseEntitlement.is_entitlement_refundable', return_value=False)
+    @patch('lms.djangoapps.commerce.signals.refund_entitlement', return_value=[1])
+    @patch("entitlements.api.v1.views.get_course_runs_for_course")
+    def test_user_can_revoke_and_no_refund_available(
+            self,
+            mock_get_course_runs,
+            mock_refund_entitlement,
+            mock_is_refundable
+    ):
+        course_entitlement = CourseEntitlementFactory.create(user=self.user)
+        mock_get_course_runs.return_value = self.return_values
+
+        url = reverse(
+            self.ENTITLEMENTS_ENROLLMENT_NAMESPACE,
+            args=[str(course_entitlement.uuid)]
+        )
+        assert course_entitlement.enrollment_course_run is None
+
+        data = {
+            'course_run_id': str(self.course.id)
+        }
+        response = self.client.post(
+            url,
+            data=json.dumps(data),
+            content_type='application/json',
+        )
+        course_entitlement.refresh_from_db()
+
+        assert response.status_code == 201
+        assert CourseEnrollment.is_enrolled(self.user, self.course.id)
+
+        # Unenroll with Revoke for refund
+        with patch('lms.djangoapps.commerce.signals.handle_refund_entitlement') as mock_refund_handler:
+            REFUND_ENTITLEMENT.connect(mock_refund_handler)
+
+            revoke_url = url + '?is_refund=true'
+            response = self.client.delete(
+                revoke_url,
+                content_type='application/json',
+            )
+            assert response.status_code == 400
+
+            course_entitlement.refresh_from_db()
+            assert not mock_refund_handler.called
+            assert CourseEnrollment.is_enrolled(self.user, self.course.id)
+            assert course_entitlement.enrollment_course_run is not None
+            assert course_entitlement.expired_at is None
diff --git a/common/djangoapps/entitlements/api/v1/views.py b/common/djangoapps/entitlements/api/v1/views.py
index 8b41b891f9..0858fdfbee 100644
--- a/common/djangoapps/entitlements/api/v1/views.py
+++ b/common/djangoapps/entitlements/api/v1/views.py
@@ -262,7 +262,7 @@ class EntitlementEnrollmentViewSet(viewsets.GenericViewSet):
         If is_refund parameter is provided then unenroll the user, set Entitlement expiration, and issue
         a refund
         """
-        is_refund = True if request.query_params.get('is_refund', 'false') == 'true' else False
+        is_refund = request.query_params.get('is_refund', 'false') == 'true'
 
         # Retrieve the entitlement for the UUID belongs to the current user.
         try:
@@ -310,5 +310,10 @@ class EntitlementEnrollmentViewSet(viewsets.GenericViewSet):
                 'Entitlement Refund failed for Course Entitlement [%s]. Entitlement is not refundable',
                 str(entitlement.uuid)
             )
+            return Response(
+                status=status.HTTP_400_BAD_REQUEST,
+                data={
+                    'message': 'Entitlement refund failed, Entitlement is not refundable'
+                })
 
         return Response(status=status.HTTP_204_NO_CONTENT)