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TMI Blog2018 (10) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... nd receiving rents as joint owners of the commercial complex. It appeared that the commercial complex was constructed on the lands separately owned by Smt. A. Akila and the other co-owner. The patta for the above lands remained separate and the rental incomes were received individually. Both the co-owners had also obtained service tax registration certificate. The department took the view that the co-owners could not individually avail the threshold exemption from April 2009 to September 2010 for which reason service tax liability was required to be discharged on the total rental income. Accordingly show cause notice dt. 18.10.2012 was issued inter alia, demanding differential service tax of Rs. 4,20,128/- with interest thereon as also impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (510 STR 38 (Tri.-Chan.) 3. On the other hand, Ld. A.R Shri B. Balamurugan supports the impugned order. 4. Heard both sides and have gone through the facts. We find that the Ld. Advocate is correct in her assertion that the matter is already settled by a plethora of decisions of the Tribunal. In the case of Sarojben Khusalchand Vs CST Ahmedabad (supra) relied upon by Ld. Advocate, the Tribunal has observed as under : "7.The basis of allegation by the Revenue against the Appellants rests on the premise that even though the immovable property is jointly owned by several persons, since the property itself is indivisible, and each person cannot separately render the service without involvement of other co-owners, hence the total rent recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of association of persons they have referred to the judgment of Hon‟ble Supreme Court in the case of CIT v. Indira Balkrishna (supra) followed in Deghamwala Estates (supra) case where under similar circumstances, the co-owners who received the rent income proportionate to their share had been assessed to income tax separately, but not as an association of persons. ... ... ... ... ... .... 9. We find force in the contention of the ld. Advocates representing the respective appellants inasmuch as „association of persons‟ has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined togethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inable 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 exemption Notification No. 6/2005-S.T., 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. 10. In the result, the impugned orders are set aside and the appeals are allowed with consequential relief, if any, as per law." The above ratio has been reiterated by the Tribunal in Anil Saini Vs CCE Chandi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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