TMI Blog2019 (2) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... sociation of persons and it was held that 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. SSI Exemption - Held that:- For verification as to whether these appeals fall within the threshold limit, it is necessary to remand the matter back to the adjudicating authority for the limited purpose of verifying the threshold limit of the individual co-owners, as may be applicable during the relevant periods of dispute. Appeal partly allowed and partly remanded. - ST/40137-40139/2015, ST/40115-40119/2016, ST/40130/2016, ST/40866/2016, ST/40877/2016, ST/42206-42207/2016, ST/41684-41685/2017, ST/41170-41171/2018 - Final Order Nos. 40224-40240/2019 - Dated:- 21-1-2019 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. D. Naveena, Advocate, Ms. Amritha Aravindan, Advocate, Shri. S. Kannappan, Advocate, Shri. S. Ramachandran, Consultant for the Appellants Shri. A. Cletus, ADC (AR), Shri. S. Govindarajan, AC (AR), Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. T. Usha Devi, Shri. A. Cletus, Shri. B. Balamurugan and Shri. S. Govindarajan appeared and argued the matter. They strongly supported the findings in the impugned Orders. It is pointed out by them that the individual co-owners have come together to form an association of persons to rent out the property to the tenant. The service provided is therefore indivisible and if one co-owner recedes from the agreement for renting the property, the service cannot be provided. The service provided flows along with the property that is rented to the tenant and therefore, these co-owners have to be considered as an association of persons . They adverted to Section 65B(37) of the Finance Act, 1994 and submitted that with effect from 01.07.2012, the definition of person includes an association of persons . So, at least after 01.07.2012, the renting of property by the co-owners to a tenant would have to be considered as provided by an association of persons, whether they are incorporated or not. 3.2 They also argued that this position of the amendment with effect from 01.07.2012 was not considered in the decision of Sarojben Khusalchand (supra). Only because appellants herein have rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for threshold limit of SSI exemption has been decided by the Tribunal in the case of C.C.E, Nasik Vs. Deoram Vishrambhai Patel reported 2015 (40) S.T.R. 1146 (Tri. Mum.). It can be seen that the rent from the property is received separately by each of the co-owners although the property is jointly owned by them. 7.1 The Tribunal in the case of Sarojben Khusalchand Vs. C.S.T. 2017 (4) G.S.T.L. 159 (Tri. Ahmd.) had occasion to analyse the very same issue as to whether co-owners can be considered as an association of persons. The relevant paragraphs are noticed 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 received as a whole, be considered for the purpose of computing aggregate value of taxable services in extending the Notification 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 benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual 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 is that since the property is indivisible and not earmarked against each of the co-owners, hence the Service Tax is leviable on the total rent received 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 co-owners. 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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