TMI Blog2018 (11) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... d, 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 co-owners. Once the value of service provided by a service provider is ascertainable service tax is accordingly charged. Appeal allowed - decided in favor of appellant. - Appeal No.ST/40291/2015 - FINAL ORDER No. 42534/2018 - Dated:- 1-10-2018 - Ms. Sulekha Beevi, C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri N. Manickam, Advocate For the Appellant Shri B. Balamurugan, AC (AR) For the Respondent ORDER Per Bench The facts of the case are that Srimathy Complex, a commercial complex located in Trichy was originally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e four co-owners are to be treated as 'body of individuals' willingly joining together to provide taxable value of service of renting . He submits that though SCN has not been served to the four co-owners and these orders are also not being issued to them in spite of which, tax and penalty has been imposed on the individual co-owners and the entire proceeding would be bad abinitio. (ii) Even on merits, Ld. Advocate submits that the matter has been settled in their favour and it has been held in a number of decisions that in such cases co-owners cannot be treated as association of persons and service tax cannot be clubbed on the total amount. He relies on the following case laws: 1) Sarojben Khusalchand Vs CST Ahmedabad - 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 6/2005-S.T., dated 1-3-2005, as amended. In other words, the Service Tax is assessed on the total amount of rent, without extending the benefit of exemption Notification No. 6/2005-S.T. on the rent received by each co-owner in proportion to his share in the immovable property rented/leased. The reasoning of the lower authorities in denying the benefit to each co-owner is that the meaning of person defined under Section 3(42) of General Clauses Act, includes any company or body of individual whether incorporated or not should be pressed into service to levy Service Tax on the total rent received by all co-owners considering them as body of individual or association of persons in computing the gross taxable value under the exemption Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax 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. Another argument of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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