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2019 (1) TMI 1109 - AT - Service TaxRenting of immovable property - Co-ownership - Association of persons - inherited property - SSI Exemption - clubbing of clearances - Held that:- The demand on co-owners jointly cannot be sustained. This Bench itself in the case of Shri. S. V. Janardhanam Vs. Commissioner of G.S.T. & Central Excise Salem [2018 (10) TMI 476 - CESTAT CHENNAI] relied upon another Tribunal decision in the case of Sarojben Khusalchand [2017 (5) TMI 240 - CESTAT AHMEDABAD] and held that such co-owners are receiving rents separately in proportion to their share and are also being assessed separately under income tax law. The service tax liability will require to be quantified individually for the co-owners provided they exceed the threshold limit for taxability under service tax. Penalty u/s 77 and 78 of FA - Held that:- Since the very edifice of the demand made jointly on the co-owners has crumbled, there will not be any penalty imposable on these appellants. Hence, the penalties imposed under Sections 77 and 78 of the Finance Act, 1994 are set aside. The matter is remanded to the Original Authority who will re-work the service tax liability after taking into account the value of taxable service relative to each of the co-owners and after giving the benefit of threshold limit for taxation to each of them - appeal allowed by way of remand.
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