CESTAT, AHMEDABAD BENCH
Smt. K D Chaudhary
Commissioner of Service tax, Ahmedabad
ORDER NOS. S/1833-1835/WZB/AHD/2012
APPLICATION NOS. ST/S/ 442 TO 444 OF 2012
APPEAL NOS. st/185 to 187 of 2012
SEPTEMBER 3, 2012
M.V. Ravindran, Judicial Member
All these three applications are filed against a common order in appeal for waiver of pre-deposit of amounts of service tax liability of Rs.51,640 /- confirmed against each appellant, interest thereof and penalties under Section 76, 77 and 78 of Finance Act, 1994.
2. Heard both sides and perused the record.
3. The issue involved in this case is regarding service tax liability on the above mentioned individuals as a provider of service under the category of renting out of immovable property.
4. Learned counsel on behalf of the appellants would submit that all the above individuals are co-owner of a particular building and have rented out the premises to M/s. Indian Overseas Bank at a monthly rent of Rs.96,415/-, who issues different cheques to all the above three appellants as they are co-owners. It is his submission that the amount received by the individuals would be within the threshold limit of SSI exemption as granted by Notification No.6/2005-ST dated 01.03.2005 and amended vide Notification No. 08/2008-ST dated 01.3.2008. It is his submission that the Revenue has considered the amounts received by all of the applicants as collectively and seeking to charge the service tax liability individually on the persons.
5. Learned Departmental Representative on the other hand would submit that the property involved in this case is jointly owned by all the persons and the said property is being rented out and hence there is service of renting out of an immovable property. It his submission that for individual purposes, and for the purpose of benefit of individual co-owners, the appellants sought the payment individually. It is his submission that the department is correct in assessing the service tax liability after considering the amount collectively received by the individual appellant.
6. After considering the submissions made by both sides, we find that benefit of SSI exemption Notification No.6/2005-ST dated 01.3.2005 as amended vide Notification No.8/2008-ST dated 01.3.2008, grants the benefit of exemption of service tax per year, provided that the assessee has not crossed the threshold limit of rupees ten lakhs in the preceding financial year. On perusal of the said notification, we find that the said notification talks about the aggregate value of the taxable services rendered, should be considered for the purpose of exemption and in this case if individually all the appellants be considered as provider of such service, their aggregate value does not exceed the threshold limit. Prima-facie, we find that the appellants have made out a case for waiver of pre-deposit of amounts involved. Accordingly, the applications for waiver of pre-deposit of amounts are allowed and recoveries thereof stayed till disposal of appeals.