Co-Owners Holding Immovable Property is Treated as Independent Service

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that co-owners holding immovable property are to be considered independent service providers, thereby allowing them service tax exemption. The case involved co-owners renting out property and receiving rent separately. The Tribunal held that the rental income received by each co-owner should not be aggregated for service tax purposes, as they are independent entities. This decision emphasizes that co-owners are distinct service providers, not a single taxable entity, thus exempting them from service tax on their individual shares of rental income.