TMI Blog2020 (3) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... ADURAI [ 2019 (2) TMI 862 - CESTAT CHENNAI] had considered the very same issue as to whether rent received by co-owners can be clubbed together to demand service tax. The Tribunal in the said order had relied upon the decision in the case of SAROJBEN KHUSALCHAND OTHERS VERSUS C.S.T. -SERVICE TAX - AHMEDABAD [ 2017 (5) TMI 240 - CESTAT AHMEDABAD] and allowed the benefit of exemption notification no.6/2005-ST dt. 1.3.2005 to the individual co-owners who jointly owned the property and provided the service of renting of immovable property. It was held that service tax is leviable only in proportion to the rent received by each of the co-owners. The Tribunal in the said case had remanded the matter to the adjudicating authority to cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax on renting of immovable property services. He submitted that when the rent received by each co owner is taken into consideration, that amount would be below the threshold limit for each appellant and therefore will not be liable to pay any service tax. He prays that the impugned orders may be set aside. 3. Ld. A.R Shri S.Balakumar supported the findings in the impugned order. 4. Heard both sides. We find that this Bench of the Tribunal in a batch of appeals viz. Smt. Rajeswari others in Appeal Nos. ST/40115/2016 to ST/40119/2016 had considered the very same issue as to whether rent received by co-owners can be clubbed together to demand service tax. The relevant portion of the said Tribunal s order is reproduced as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 persons, when each co-owner receive the rent proportionate to their share in the immovable property, having separate PAN No. and subjected to TDS and income tax assessment separately. In support of their argument on the scope and meaning of association of persons they have referred to the judgment of Hon ble Supreme Court in the case of CIT v. Indira Balkrishna (supra) followed in Deghamwal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 thing and hence it is not necessary to be identified with physical demarcation of the immovable property given on rent against individual co-owners. Once the value of service provided by a service provider is ascertainable Service Tax is accordingly charged. This Tribunal in similar facts and circumstances in the cases of Deoram Vishrambhai Patel, Anil Saini Others and Luxmi Chaurasia (supra) after considering the issues ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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