Confirmation of Service Tax Higher than Proposed Demand in SCN is Not Valid: CESTAT

CESTAT invalidates service tax confirmation exceeding SCN demand, stressing demands cannot surpass proposed amounts without justification. The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that a service tax demand confirmed in an order cannot exceed the amount proposed in the original Show Cause Notice (SCN) without proper justification. The tribunal emphasized that the scope of the final demand is limited by the SCN, which provides the basis for the allegations. This decision reinforces principles of natural justice, ensuring that assessees are duly informed of the specific demands against them and that authorities adhere to the ambit of their initial notices.