Tribunal sets aside service classification, rules in favor of appellant, finding order exceeded scope of notice.

The Tribunal set aside the impugned order classifying the service under "Franchisee Service" instead of "Commercial Training and Coaching Service" as proposed in the show-cause notice. The appeal was allowed in favor of the appellant as the order exceeded the scope of the notice, which impermissibly demanded tax under a different taxable head.

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Issues:
Classification of taxable service under "Commercial Training/Coaching Service" or "Franchisee Service" based on show-cause notice scope.

Analysis:
The appeal was filed against the Commissioner (Appeals) order confirming service tax demand under "Franchisee Service" instead of "Commercial Training and Coaching Service" as proposed in the show-cause notice. The appellant argued that the order exceeded the show-cause notice scope, citing relevant case laws. The Revenue contended that since the notice addressed short payment related to franchise service, the order was justified. The Tribunal examined the show-cause notice, adjudication order, and the impugned order. It was observed that the show-cause notice proposed confirming service tax demand under commercial training and coaching service, which was upheld in the adjudication order. However, the Commissioner (Appeals) classified the service under "Franchisee Service" based on contract and documents. The Tribunal noted the dismissal of the appeal solely on different grounds than those proposed in the notice, indicating the order went beyond the notice's scope. Citing relevant case laws, the Tribunal concluded that demand under a different taxable head not proposed in the show-cause notice is impermissible. Therefore, the impugned order was set aside, and the appeal was allowed in favor of the appellant.

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