#Renting of Immovable Property Service

CESTAT Chennai rules co-owners of commercial property cannot be treated as an 'association of persons' for service tax on rental income, setting aside demands and upholding individual assessment. The ruling clarifies that co-ownership does not trigger collective liability under service tax laws, benefiting small property owners.

CESTAT Chennai rules that CENVAT credit is available on rent paid for sub-leased property, even where the appellant is not the owner. The Tribunal held that the nexus to output services suffices to classify such payments as 'input services' under Rule 2(l) of the CENVAT Credit Rules, 2004, rejecting Revenue's argument that ownership is mandatory for credit eligibility. This clarifies input service scope for businesses engaged in sub-leasing arrangements.