When your're fighting Scarecrow he won't appear anywhere. He will send his ghosts to attack you. There are 4 round tiles on the floor. Go to each tile and press the punch or kick button. The inScarecrow will be standing on one of the tiles. When he get's hit by your punch or kick he will appear there. Keep attacking him till he disappears, and repeat this step until his life is all gone. Do not go after the ghosts.