Finality of earlier adjudication bars later demand on the same show cause notice when no appeal was filed against the original order.

Where two adjudication orders arose from the same show cause notice, the Commissioner (Appeals) could not sustain a later demand after an earlier adjudication had already dropped the demand and the Revenue had not appealed that order. Once the earlier order attained finality, the subsequent order confirming the demand had no legal foundation, because the first order continued to govern the dispute. The appellate order was therefore unsupported in law and was set aside.

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Issues: Whether the Commissioner (Appeals) could sustain the demand when an earlier adjudication order had already dropped the demand on the same show cause notice and no appeal had been filed against that order.

Analysis: Two adjudication orders existed in relation to the same dispute. The earlier order dropped the demand, and the Revenue did not challenge that order before the appellate authority. Once that order attained finality, the later order confirming the demand could not survive on the reasoning that the first order would continue to operate. The impugned appellate order was therefore unsupported in law.

Conclusion: The impugned order was set aside and the appeal was allowed.

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