TMI Blog2018 (10) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The demand cannot sustain and requires to be set aside - appeal allowed - decided in favor of appellant. - ST/41076 to 41078/2017 And ST/41081/2017 - 42470-42473/2018 - Dated:- 25-9-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gle lease deed and paid income tax. For service tax, the only rent received by each of them was less than the threshold limit. When the limit crossed in 2014 15, the appellants have taken individual registration and started paying the service tax. The department has considered the four individuals to be association of persons and demanded service tax combining the rent received by each co-owner. Such demand on inherited property as association of persons is not tenable in law. He adverted to the reply to the show cause notice and submitted that the year wise break-up of rent received by each co-owner would be less than the threshold limit for the disputed period, the demand cannot sustain. The decision of the Tribunal in the case of Saroj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual owner; thus since each of the co-owners not holding absolute ownership of any identifiable part in the property, hence not entitled to the benefit of said Notification. Further, the co-owners had only undivided interest in whole of the property and no divided interest in separate parts; accordingly, each coowner cannot lease their share of the property independently to the lessee, hence the services of renting of their property since indivisible in nature and hence to be considered as single service. The ld. AR further submitted that the assessment under the Income Tax separately has no effect on Service Tax matters in which the service of renting of property is indivisible and the Appellants are liable to pay Service Tax on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 coowners. 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 raised, rejected the contention of the Revenue and allowed the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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