https://www.taxtmi.com/caselaws?id=776147 The CESTAT held that the show cause notice (SCN) was vague, lacking specific details on the quantum and classification of service tax demand across different service categories, violating natural justice principles. The department failed to specify demands under the pre-negative list regime properly. The appellant's receipt of free materials was not denied but included in taxable value without details; following SC precedent, the value of free materials cannot be included in taxable value. There was no evidence of suppression or malafide intent to justify extended period invocation. The Commissioner (Appeals) erred in ignoring classification issues. Consequently, the extended period demand was unsustainable, and the impugned order was set aside, allowing the appeal. en-us Tue, 05 Aug 2025 00:00:00 +0530 Tue, 05 Aug 2025 14:20:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776147 The CESTAT held that the show cause notice (SCN) was vague, lacking specific details on the quantum and classification of service tax demand across different service categories, violating natural justice principles. The department failed to specify demands under the pre-negative list regime properly. The appellant's receipt of free materials was not denied but included in taxable value without details; following SC precedent, the value of free materials cannot be included in taxable value. There was no evidence of suppression or malafide intent to justify extended period invocation. The Commissioner (Appeals) erred in ignoring classification issues. Consequently, the extended period demand was unsustainable, and the impugned order was set aside, allowing the appeal. Case-Laws Service Tax Tue, 05 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776147