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TMI Blog2018 (10) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Demand do not sustain - appeal allowed - decided in favor of appellant. - ST/42574/2014 - 42538/2018 - Dated:- 1-10-2018 - Ms. Sulekha Beevi, C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellant : Ms. S. Gayathri, Advocate For the Respondent : Shri B. Balamurugan, AC (AR) ORDER PER BENCH The facts of the case are that Smt. A. Akila (hereinafter is referred to as the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocate Ms. S. Gayathri submits that the exemption under Notification No.6/2005-ST dt.1.3.2005 is applicable to both the co-owners individually; that rent received by each owner as per the share in the jointly owned property cannot be clubbed together and assessed to service tax. Ld.Advocate further submits that the issue is no longer res integra and that it has been decided in a number of Tribunal decisions that clubbing of rent amounts received by each co-owner in such situation as per their share in jointly owned property is not permissible and no tax is leviable, if such co owner entered into rent agreement in the individual capacity and each of them received rents lesser than the threshold limit as applicable. Ld. Advocate relies upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e meaning of person defined under Section 3(42) of General Clauses Act, includes any company or body of individual whether incorporated or not should be pressed into service to levy Service Tax on the total rent received by all co-owners considering them as body of individual or association of persons in computing the gross taxable value under the exemption Notification No. 6/2005-S.T. The appellants on the other hand, vehemently argued that the definition of person‟ provided under the General Clauses Act, is not relevant and inapplicable to the facts and circumstances of the present case, inasmuch as merely because several persons own the immovable property jointly, they cannot be treated as body of individuals or association of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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 against the said property without apportioning against each of the co-owners in proportion to their share. We find fallacy in the said argument of the Revenue. Conceptually Service Tax is levied on the service provided, which is an intangible thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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