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TMI Blog2016 (12) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... ome from the tenants. Accordingly, I hold that the said expenditure is not with respect to earning of Revenue or providing of output service and as such, I hold the same is inadmissible - credit not allowed. Brokerage expenses paid to realistic agency for finding tenant - denied on the ground that the specific name of tenant or person was not mentioned - Held that: - being service tax to DTZ, it appears from the invoice & clarification issued by the service provider that the same is with respect to finding of tenant for the appellant with respect to the property located at Noida. I remand this issue to the adjudicating authority for verification of the rent agreement with the tenants and if the appellant have earned the income from them, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010, invoice dated 30/10/2010 states that amount charged towards performance for the year 2010-11, without giving any specific name of the tenant or person. The appellant contested the SCN, vide Order-in-Original dated 07/02/2014 the proposed disallowance was confirmed along with interest and equal amount of penalty under Section 78 of the Finance Act, 1994. Being aggrieved the appellant preferred appeal before the ld. Commissioner (Appeals) who vide the impugned order allowed the appeal in part, but upheld the disallowance of Cenvat credit along with proportionate amount of penalty, at ₹ 8, 65, 080/-. 3. Being aggrieved, the appellant is before this Tribunal. 4. The ld. Counsel urges that the definition of input service as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levard, both at Noida. The clarificatory letter further says that service tax charged, has been deposited with the Service Tax Department along with other services provided. The ld. Counsel further urges that in view of the clarification given that the invoices relates to brokerage expenses for finding tenant raised by DTZ the nomenclatures used in the invoice as performance or bonus, is synonymous with brokerage or commission, and as such, the ld. Commissioner (Appeals) have erred in drawing adverse inference. He also stated that it is not in dispute that the appellant have not earned rental income from the tenants in question being Central Bank, Kronos. Accordingly, he prays for allowing the same. The ld. Counsel for the appellant have al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) STR 577 (Bombay) wherein the Honourable Court considering the allowability of services received under the definition of input service in so far as it relates to the manufacture of final products is concerned, consists of three categories of services. The 1st category, covers services which are directly or indirectly used in or in relation to the manufacture of final products. The Second category covers the services which are used for clearance of final products up to the place of removal and the Third category includes input services namely (i) services for setting up modernization etc., (ii) services used in an office of the factory, (iii) services like advertisement or sales promotion market research, storage upto place of removal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report, he states that it is evident that the said report could not be utilized by the appellant service provider for providing taxable output service. Accordingly, the disallowance have been rightly made. 6. Having considered the rival contentions, I find that so far the service of market research is concerned, the same relates to professional services for market-research. Without recording any finding that the appellant have no rental income from Gurgaon and or have not made any investment either prior to obtaining the report or after the obtaining of report for earning rental income from the tenants. Accordingly, I hold that the said expenditure is not with respect to earning of Revenue or providing of output service and as such, I h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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