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TMI Blog2017 (10) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... f the property cannot be considered as liable to pay Service Tax (jointly or severally) as the Revenue has identified the services provider and the service recipients for imposing the Service Tax liability which are individuals. Therefore, the Service Tax liability is not sustainable. The demand of Service Tax against the appellants is not sustainable as the appellants are entitled to benefit of N/N. 06/2005-ST dt. 01.03.2005 - appeal allowed - decided in favor of appellant. - ST/205-207/2012-DB, ST/185-187/2012-DB, ST/2-5/2012-DB And ST/555-558/2012-DB - A/12808-12810/2017, A/12811-12813/2017, A/12814-12817/2017 And A/12804-12807/2017, - Dated:- 29-9-2017 - Dr D.M. Misra, Member (Judicial) And Shri Devender Singh, Member (Technical) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty Services. In these set of facts, show cause notice dt 21.10.2008 was issued to the appellants to demand the Service Tax of ₹ 2,01,938/-. The same was adjudicated and the demand of Service Tax for 2007-2008 and 2008-2009 along with interest was confirmed and penalties on all the appellants were also imposed. In appeal, Commissioner (Appeals) upheld the demand of ₹ 1,03,058/- along with interest. Penalty under Section 78 was reduced to ₹ 1,03,058/- and under Section 76 was restricted upto 10.05.2008. Aggrieved from the said order, the appellants are before us. 4. Heard both the sides and considered the submissions. 5. We find that the identical issue came up before this Tribunal in the case of Anil Saini and Oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iginal mainly on the grounds that rented property belongs to four separate persons (all brothers) but the service tax has been demanded wrongly by the department from the appellants by clubbing the rent received by all the co-owners and, therefore, the demand off tax is not maintainable on this ground alone. In support they have produced a City survey Extract as evidence regarding ownership of the rented property which shows that the said property was purchased in 2003 and is owned jointly by all the four co-owners. Further, the lease agreements with M/s Max New York Life Insurance co. Ltd., Oriental bank of Commerce, Axis Bank, Kotak Mahindra Bank and HDFC Standar Life Insurance Ltd. are also entered into by the appellants in their individ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt lesser than ₹ 8 lakhs and 10 lakhs in the years 2007-08 and 2008-09 respectively which is below the exemption limit of eight lakhs and ten lakhs during the relevant period. The appellants were, therefore, not liable to pay service tax on the amounts received by them during these two years by virtue of Notification No.6/2005-S.T., dated 01.03.2005. The appellant s case is also supported by the Tribunal s decision in the case of Dinesh K. Patwa V. CST, Ahmedabed which is referred in para 3(ii) above. However, in the Financial Year 2009-10 and 2010-22, the receipt off rent by each appellant exceeded the statutory exemption limit of ₹ 10 lakhs and the appellants have paid service tax along with interest on their own before rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they had paid service tax for the years 2009-10 and 2010-11 on their own initiative and there was no suppression of facts etc. on their part with any intention of evade service tax cannot be denied. Considering all these facts, I agree with the appellant s contention that this case was squarely covered under sub-section (3) of Section 73 which provided not to issue any notice under sub-section (1) of Section 73 if the service tax not levied or paid was paid along with interest by the person concerned before service of notice on him and informed the Central Excise Officer of such payment in writing. Further in Explanation 2 of the said sub section it is also clearly provided that no penalty under any of the provisions of the Act or the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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