Small scale service-tax exemption for co-owners turned on separate rent receipts and individual threshold assessment for pre-deposit waiver.

Co-owners receiving rent separately were held to have made out a prima facie case for waiver of pre-deposit because the small scale service-tax exemption is tested on the aggregate value of taxable services rendered by each assessee for the relevant year. On the stated facts, if each appellant was treated as an individual service provider, the value attributable to each did not cross the prescribed threshold, so recovery was stayed pending disposal of the appeals.

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Issues: Whether the appellants, being co-owners receiving rent separately, were entitled to waiver of pre-deposit on the ground that the value of taxable services attributable to each of them remained within the small scale exemption threshold.

Analysis: The exemption notification grants benefit based on the aggregate value of taxable services rendered, with the threshold tested for the assessee for the relevant year. On the facts, the rent was received by the co-owners separately and, if each appellant was considered as an individual service provider, the aggregate value attributable to each did not cross the prescribed limit.

Conclusion: The appellants made out a prima facie case for waiver of pre-deposit, and recovery was ordered to remain stayed till disposal of the appeals.

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