Shri S.V. Janardhanam Versus Commissioner of GST & Central Excise Salem
Service Tax
2018 (10) TMI 476 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 25-9-2018
ST\/40588\/2015 – 42474\/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
\nFor the Appellants : Shri S. Kannappan, Advocate
\nFor the Respondent : Shri K. Veerabhadra Reddy, ADC (AR)
\nORDER
\nPER BENCH
\nBrief facts are that it was observed that Shri S. Varadharaju Chettiar, Smt. V. Anusuya and Shri S.V. Janardhanam are joint owners of immovable property which was rented out for commercial purposes. The department was of the view that all these three persons who are co-owners of the property are to be treated as a single entity in the nature of association or body of individuals. The rent received by them when combined together would cross the threshold limit. Thus, they are liable to pay service tax. Show cause notice was issued proposing to demand se<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n submitted that the co-owners cannot be considered as association of persons and is settled by the decision of the Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240. He also relied on the following case laws: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n assessment under the Income Tax separately has no effect on Service Tax matters in which the service of renting of property is indivisible and the Appellants are liable to pay Service Tax on the gross value realised in providing the service. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n gainst the said property without apportioning against each of the co-owners in proportion to their share. We find fallacy in the said argument of the Revenue. Conceptually Service Tax is levied on the service provided, which is an intangible thing and hence it is not necessary to be identified with physical demarcation of the immovable property given on rent against individual co-owners. Once the value of service provided by a service provider is ascertainable Service Tax is accordingly charged. This Tribunal in similar facts and circumstances in the cases of Deoram Vishrambhai Patel, Anil Saini & Others and Luxmi Chaurasia (supra) after considering the issues raised, rejected the contention of the Revenue and allowed the benefit of exemption Notification No. 6\/2005-S.T., dt.1-3-2005 as amended to individual co-owners who jointly owned the property and provided the service of renting of immovable property, and received the rent in proportion to the shares in the immovable property.” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Shri S.V. Janardhanam Versus Commissioner of GST & Central Excise SalemService Tax2018 (10) TMI 476 – CESTAT CHENNAI – TMICESTAT CHENNAI – ATDated:- 25-9-2018ST\/40588\/2015 – 42474\/2018Service TaxMs. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellants : Shri S. Kannappan, Advocate For the Respondent : Shri K. Veerabhadra Reddy, … Continue reading “Shri S.V. Janardhanam Versus Commissioner of GST & Central Excise Salem”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14377","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14377"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14377\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n a. Anita Singh & Ors. Vs. CGST, CC & CE, Dehradun – 2018 (6) TMI 810 – CESTAT, New Delhi.
\n b. Sh. Jasdeep Singh & Ors. Vs. Commissioner of Central Excise, Jalandhar – 201 (5) TMI 895 – CESTAT, Chandigarh
\n3. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order.
\n4. Heard both sides.
\n5. The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar i<\/p>\n
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\n 9. We find force in the contention of the ld. Advocates representing the respective appellants inasmuch as „association of persons‟ has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an „association of persons<\/p>\n
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