2020 (3) TMI 748

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....notice proposing to demand service tax under renting of immovable property services. After due process of law, original authority confirmed the demand, interest and imposed penalty. On appeal, Commissioner (Appeals) upheld the same. 2. Today when the matter came up for hearing, Ld. counsel Shri M.N.Bharathi submitted that the in appellant's case for the previous period, the Tribunal had held the issue in favour of the assessee observing that the entire rent received by the appellant cannot be clubbed together so as to demand service tax on renting of immovable property services. He submitted that when the rent received by each co owner is taken into consideration, that amount would be below the threshold limit for each appellant and there....

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....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' provided under the General Clauses Act, is not relevant and inapplicable to the facts and circumstances of the present case, inasmuch a....

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....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 coowners 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 ....