Duplicate service tax notice unsustainable where the same demand had already been adjudicated and was pending in appeal.

A second show cause notice demanding the same service tax for the same period and amount was held unsustainable because an earlier notice on the same liability had already been adjudicated and affirmed, with the further challenge pending before the Tribunal. The reasoning was that once the dispute had moved into appellate proceedings, the same demand could not properly be raised again through a fresh notice. The cited decision was distinguished on the basis that it concerned a pending first notice, whereas this matter involved a prior adjudication and confirmation. The subsequent notice and confirmation were therefore set aside in favour of the assessee.

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Issues: Whether a second show cause notice demanding the same service tax, for the same period and amount, was sustainable when an earlier notice on the same issue had already been adjudicated and the matter was pending in appeal.

Analysis: The appellant had already been proceeded against by an earlier notice covering the same liability, period and amount, and that demand had been adjudicated and affirmed in appeal, with the further challenge pending before the Tribunal. In such a situation, issuance of another notice for the same cause was not legally proper, because the dispute remained alive in appellate proceedings and the same demand could not be raised again by a fresh notice. The reasoning adopted in the cited decision involving a pending first notice was distinguished, as the present case involved a prior adjudication and confirmation.

Conclusion: The subsequent show cause notice and the impugned order confirming it were unsustainable, and the appeal was allowed in favour of the assessee.

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