TaxTMI 
TaxTMI 
2026 (7) TMI 1361
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....he impugned order, are that the Appellants are the co-owners of a commercial complex which was let out to various tenants from whom monthly rentals were being collected. Revenue was of the view that the above renting of the immovable property fell under the definition of 'Renting of Immovable Property Service' (RIPS) and, when the Appellants did not accept their liability to service tax under the above service, it appears that there were exchange of letters and also summons; it is also a matter of record that in their letters the Appellants claimed that they did not individually cross the threshold exemption limit available under Notification No.6/2005-ST dated 01.03.2005 as amended. It is also brought out that statements of co-owne....
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.... of the Assessee by this Bench in the case of Naresh Gopaldas Lund and Eight Others Vs CGST & Central Excise, Coimbatore others vide Final Order Nos.40116-40122/2026 dated 21.01.2016 and hence, he would pray for allowing the Appeal. 5. Per contra, Smt. Rajni Menon, Ld. Departmental Representative supported the findings of the lower authorities. 6. We have considered the above Final Order of this Bench [wherein Member (Technical) Shri M. Ajit Kumar has authored the order] and the relevant portions of the order read as under : '12. The above judgments delineates the legal prerequisites for the formation of an association of persons. Firstly, there must be a meeting of the minds. An association can only arise when individuals vo....
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.... he is only a part-owner or a fractional owner of the property. The position will change only when partition takes place. .." (emphasis added) Once a person owns property on his own strength then his act of renting out the property has to be due to his self-interest and not for the collective or common interest of the co-owners, unless there is something to suggest otherwise. 13. Revenue has asserted that, given the indivisible nature of the property, it is not feasible for each co-owner to independently provide the service of letting the property without cooperation or involvement from the other co-owners. Consequently, revenue maintains that the total rent received from the entire property should be considered w....
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....f these observations, it can be concluded that the individual appellants are entitled to be assessed separately for Service Tax in respect of their respective shares of rental income from the property. Our views are further strengthened by the judgment of the Hon'ble Andhra Pradesh High Court in Bolla Tirapanna and Sons Vs CIT [(1969) 71 ITR 209]. It was held that: "Merely because the parties entered into a single lease instead of seven separate agreements of lease, the status of the assessee cannot be determined as an association of persons as long as the intention of the parties, which is evidenced by the crediting of rental receipt separately, is otherwise." ... ... ... 16. Accordingly, we find that the appella....