Service Tax
TRT-2025-
Cestat Chennai
Date:-14-06-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 14 June 2023
Parties: M. Vijayabharathi Vs Commissioner of GST & Central Excise
Facts –
- The Appellant, M. Vijayabharathi, is providing services under ‘Renting of Immovable Property Service’ during the period from 2007-08 onwards and have not paid appropriate service tax
- It was appearing to the department that property tax on the commercial complex was assessed jointly in the name of both appellant and other co-owner Smt. Akila and the rental income received by the appellant from the property has to be considered for discharging service tax. Show cause notice was issued proposing to demand service tax from both co-owners jointly.
- The demand was confirmed along with interest and penalty.
Issue –
- Whether the appellant is required to pay service tax?
Order –
- The Tribunal observed that in the case of the co-owner Smt. Akila, the Tribunal has set aside the demand observing that income received as rent separately by each co-owner is much below the threshold limit to subject to levy of service tax. Thus, the income falls within the threshold limit for payment of service tax.
- Vide Final Order No.42538 dated 01.10.2018 the Tribunal has relied upon the decision of Anil Saini Vs CCE Chandigarh 2017 (51) STR (Tri.-Chan.). and also the case of S.V. Janardhanam Vs CGST & CE Salem - Final Order No.42474/2018 dated 25.09.2018. Following the decision in the case of the co-owner as well as other decisions, it was held that demand cannot sustain.
- The appeal is allowed.
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