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of <h1>Tribunal Grants Waiver for Small Scale Industry Exemption in Service Tax</h1> <h3>SHRI PANKAJBHAI CHAMPAKLAL PAREKH & Others Versus COMMISSIONER OF SERVICE TAX, AHMEDABAD</h3> SHRI PANKAJBHAI CHAMPAKLAL PAREKH & Others Versus COMMISSIONER OF SERVICE TAX, AHMEDABAD - 2013 (31) S.T.R. 325 (Tri. - Ahmd.) Issues Involved:Service tax liability on individuals as providers of service under Renting out of Immovable Property category.Analysis:The judgment pertains to three applications filed against a common order in appeal for waiver of pre-deposit of an amount of Rs.3,58,688/- confirmed as service tax liability, interest, and penalties under Section 76, 77, and 78 of the Finance Act, 1994. The main issue in this case revolves around the service tax liability on the individuals involved, acting as providers of service under the Renting out of Immovable Property category.The Chartered Accountant representing the appellants argued that the individuals collectively owned a building and rented out the premises to a tenant who issued separate cheques to each co-owner. The appellants claimed that the amounts received fell within the threshold limit of the Small Scale Industry (SSI) exemption as per relevant notifications. On the other hand, the Departmental Representative contended that since the property was jointly owned and rented out collectively, the service of Renting out of an Immovable Property was applicable, justifying the department's assessment of service tax liability based on the collective amounts received by the individual appellants.Upon reviewing the submissions from both sides, the Tribunal analyzed the SSI exemption Notification No. 6/2005-ST dated 01.03.2005, as amended by Notification No. 08/2008-ST dated 01.03.2008. The Tribunal noted that the exemption granted under the notification was subject to the condition that the aggregate value of taxable services rendered did not exceed the threshold limit of Rs. 10 lakhs in the preceding financial year. Considering the individual appellants as providers of the service, their aggregate value did not surpass the threshold limit, making them eligible for the exemption. Consequently, the Tribunal found merit in the appellants' case for waiver of pre-deposit of the amounts in question and granted a stay on recoveries until the disposal of the appeals.In conclusion, the Tribunal allowed the applications for waiver of pre-deposit of amounts, citing the applicability of the SSI exemption and the individual assessment of service tax liability based on the aggregate value of services rendered by the appellants under the Renting out of Immovable Property category.
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