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2023 (1) TMI 918 - AT - Service TaxShort payment of service tax - Renting of Immovable Property Services - clubbing of amount received by individual owner (39 individual owners) for renting of their immovable property - HELD THAT:- The rented property are owned by 39 individual in their name individually and separately and they had entered into lease agreement with the State Bank of India to provide their individual property collectively to the Bank through single lease agreement. The Appellants also placed on records a copy of Lease deed signed by each individual owner, copies of Municipal Tax Bills issued in the name of each owner separately. It is also found that in the present matter individual owner received the rent separately and independently. As per the payment terms, Bank paid different amount of rent to individuals as per their property. Therefore irrespective of associations of the property, the important aspect is that who are the parties in the agreement and who have received the payment on account of renting of immovable property and who is the service provider. The amount received by individual owner for renting of their immovable property cannot be clubbed for the purpose of service tax demand. Therefore, the demand is apparently not sustainable. It is very much brought out by the documents that the appellant is not the absolute owner of the rented property. The lease deed as well as the related documents shows that the property is owned by the individual owners and it is not disputed that the income by way of rent is received by individual owners separately and reflected in their income-tax returns separately. When the property is not owned by the appellant and they have not received the rent, the demand of service tax raised on the appellants alone, therefore, cannot be sustained. Appeal allowed.
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