2018 (10) TMI 476

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..... ed as a single entity in the nature of association or body of individuals. The rent received by them when combined together would cross the threshold limit. Thus, they are liable to pay service tax. Show cause notice was issued proposing to demand service tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same except for modifying the penalty imposed under section 77(1)(a). Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri S. Kannappan appeared and argued the matter. He submitted that the period of dispute is from April 2008 to March 2012. Shri S. Varadharaju Ch .....

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..... ssue and observed as under:- "4. The learned Authorized Representative for the Revenue reiterates the findings of the lower authorities. It is his contention that the learned Commissioner after taking into consideration the percentage of share of individual co-owners in the property against the total area owned and leased observed that the entire immovable property is given on lease, and there is no specific area that has been allotted to individual owner; thus since each of the co-owners not holding absolute ownership of any identifiable part in the property, hence not entitled to the benefit of said Notification. Further, the co-owners had only undivided interest in whole of the property and no divided interest in separate parts; accord .....

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..... Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the co-owners providing the service of renting of immovable property be considered as an association of persons and the Service Tax on the total rent be collected from one of the co-owners. Another argument of the Revenue is that since the property is indivisible and not earmarked against each of the co-owners, hence the Service Tax is leviable on the total rent received a .....

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