2014 (2) TMI 761 - AT - Service Tax

Cenvat Credit - service tax obtained registration in different name - Input services - Nexus with business - Held that - it is not disputed that Vishal Devgan is known as Ajay Devgan. Although the appellant has taken registration in the name of Vishal Devgan, all the activities have been performed by Ajay Devgan. This fact can be verified by the authorities concerned. Further, all these services have been availed by the appellant at the registered office. Therefore, the input service credit taken on Professional Landscape Design service is entitled as input service credit as same has been taken in respect of the business premises which is related to the activity of the appellant. - credit allowed subject to verification - Decided in favor of assessee.

Issues:
1. Denial of input service credit based on the name on the invoice and address not matching with the appellant's registered details.
2. Entitlement to input service credit for services availed by the appellant under a different name.
3. Determining the admissibility of input service credit based on the nexus with the appellant's business activities.

Analysis:

Issue 1: Denial of input service credit based on name and address discrepancy
The appellant appealed against the denial of input service credit due to discrepancies in the name on the invoice and the registered office address. The appellant, known as Ajay Devgan professionally, had registered under the name Vishal Devgan. The authorities denied the credit citing the mismatch. However, it was argued that despite the registration name difference, all activities were carried out by Ajay Devgan. The Tribunal acknowledged this fact and emphasized that services availed at the registered office are eligible for input service credit. The denial of credit solely based on the name discrepancy was set aside.

Issue 2: Entitlement to input service credit for services under a different name
The Tribunal recognized that although the appellant was registered as Vishal Devgan, the services were availed by Ajay Devgan. It was established that both names referred to the same individual. The Tribunal directed the Adjudicating Authority to verify this equivalence. If confirmed, the appellant would be entitled to input service credit, except for services related to personal activities like Club services. The Tribunal emphasized the importance of rectifying any invoice defects before claiming credit.

Issue 3: Nexus of services with the appellant's business activities
Regarding the admissibility of input service credit, the Tribunal differentiated between services directly related to the appellant's business, such as Professional Landscape Design, and those unrelated, like Club services. It was ruled that services linked to the business premises and activities were eligible for credit, while personal activities did not qualify. The Tribunal remanded the matter to ascertain the identity equivalence and instructed the appellant to appear before the Adjudicating Authority for further proceedings.

In conclusion, the Tribunal set aside the impugned order, directing a reevaluation of the input service credit eligibility based on the appellant's actual identity and the nexus of services with business activities. The appellant was advised to rectify invoice defects and attend a hearing for a final determination on the credit entitlement, excluding services unrelated to the business.

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