2018 (10) TMI 560

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....eedings by order dt. 17.03.2014 a service tax amount of Rs. 10,43,156/- was demanded jointly from all the joint owners under the category of renting of immovable property for the period 1.6.2007 to 31.03.2012 with interest thereon. Penalties were also imposed on the four joint owners under Section 77 & 78 of the Finance Act,1994. In appeal, the Commissioner (Appeals) vide impugned order dt. 14.10.2014 upheld the order of original authority. Out of the four joint owners, appeals have been filed by three of the joint owners as under : Appellant Appeal No. T. Parivallal ST/40225/2015 T. Karunanidhi ST/40226/2015 T. Chinnaraja ST/40227/2015 2. Ld. Consultant Shri V. Alagappan appearing on behalf of the appellants subm....

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....thout 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 Notification No. 6/2005-S.T. The appellants on the other hand, vehemently argued that the definition of „person&#8223....

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....ty 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 is that since the property is indivisible and not earmarked against each of the co-owners, hence th....