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2017 (5) TMI 240 - AT - Service TaxClaim of small scale exemption upto ₹ 10 Lakhs - Association of persons - N/N. 6/2005-ST, dt.1.3.2005 as amended - immovable property has been jointly owned by six co-owners - Alleging that the services provided by the respective owners are indivisible and the property being collectively owned, for the purpose of Service Tax, all the owners be considered as an association of persons, and be treated as single service provider, hence, the benefit of said N/N. 6/2005-ST, dt.1.3.2005 as amended, would not be available to each of the co-owner - whether each of the co-owner, holding immovable property jointly, but receive the lease rent separately in proportion to the share in the property, is eligible to the benefit of threshold exemption limit as prescribed under N/N. 6/2005-ST, dt.1.3.2005, as amended, separately? Held that: - the service 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. 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 Commissioner of Central Excise, Nasik Versus Deoram Vishrambhai Patel [2015 (9) TMI 790 - CESTAT MUMBAI] after considering the issues raised, rejected the contention of the Revenue and allowed the benefit of exemption Notification No.6/2005-ST, dt.1.3.2005 as amended to individual co-owners who jointly owned the property and provided the service of renting of immovable property, and received the rent in proportion to the shares in the immovable property. Appeal allowed - decided in favor of appellant.
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