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2023 (10) TMI 739 - AT - Service TaxLevy of Service Tax - SSI exemption and clubbing of rent - renting of property - Joint Ownership - renting out the show rooms/ shops/ office located at First Floor of President Plaza Building to M/s Urban Development Group (UDG) and clubbing to deny SSI exemption - HELD THAT:- There is a grave error made by the revenue by issuing a show cause notice to M/s. Dineshbhai M Patel & Ors. There is no such entity, who received entire rent of the property. As per rent agreement, it is clear that the rent is on account of eight persons in the different proportion. From the proportion of the rent (given), it is clear that the total rent is not on account of Dineshbhai M Patel alone but it is in different proportion to individual of eight persons. Therefore, the entire rent cannot be considered as consideration of M/s Dineshbhai M Patel. On taking the rent proportion of each person, it will much below the threshold limit of small scale exemption provided under notification No. 06/2005-ST dated 01.03.2005 as amended by notification No. 04/2007-ST dated 01.03.2007 and Notification No. 08/2008-ST dated 01.03.2008. Accordingly, no Service Tax demand arises against any one. This issue has been considered in the various judgments cited by the appellant, wherein in the case of the joint agreement of different owner of the property made for lease to any corporate and in the said judgments, it is categorically held that the rent of individual's portion may be taken as the gross value against that individual person and cannot be taken combinedly - reliance can be placed in COMMISSIONER OF CENTRAL EXCISE, NASIK VERSUS DEORAM VISHRAMBHAI PATEL [2015 (9) TMI 790 - CESTAT MUMBAI]. Appeal allowed.
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