Maintainability of Adjudicating Order confirming the demand on the ground other than the ground mentioned in the Show Cause Notice.

Maintainability of Order-in-Original beyond the Scope of SCN.

In the instant case, the SCN was issued to raised demand of Service tax within the category of "Consulting Engineering Service."

However, while passing the order-in-original, the adjudicating authority confirmed the demand of Service Tax on different service including "out of pocket expenses"

While passing the order the adjudicating officer has given a finding that the services availed by the appellant in respect of Chartered Accountant Services, Business Auxiliary Services and Commercial Coaching and Training Services are chargeable to Service Tax. He has not allowed even the "out of pocket expenses" holding that it is a part of the gross amount received by the service provider for the taxable services. After pursuing the facts and arguments, honorable tribunal ordered that:

We are of the view that the demand of Service Tax is not sustainable. Therefore, no interest and penalty also can be levied.

(For full text of judgment - visit 2008 -TMI - 3608 - CESTAT BANGALORE)a