Order Date – 05 April 2023

Parties: Shri Akash Devendrakumar Sharma with Poonam Nageshkumar Sharma, Smt Sheeladevi Devendrakumar Sharma, Smt Laxmidevi Nareshkumar Sharma, Smt Chetnadevi Umashankar Sharma Vs Commissioner of Central Excise & ST, Ahmedabad

Facts – 

• The Appellants, Shri Akash Devendrakumar Sharma and others, owns a property and entered into lease agreement with Reliance Industries Limited and for renting the property.

Issue – 

• Whether appellants are liable to service tax by clubbing of all five persons or otherwise?

Order – 

• The Tribunal observed that as per lease agreement, every individual is independent owner of his share. The rent is also paid by the service recipient to each individual. In such case, every individual become a separate service provider hence, if at all service tax arises, it needs to be assessed in respect of every individual. 
• Further, the rent received by the individual is well within the threshold limit provided for exemption under Notification No. 6/2005-ST dated 01.05.2005. Therefore, there is no service tax liability on any of the appellant.
• The issue is no longer res-integra as an identical issue has been considered by this Tribunal in the case of Neenaben R Doshi & others in Appeal No. ST/10248/2013-DB. Accordingly, the impugned order is set-aside and the appeals are allowed.