Limitation for subsequent show cause notice fails where later allegations rest on distinct facts, fuller investigation, and wider evidence.

A subsequent show cause notice was not time-barred where it was founded on a fuller investigation, different documents, and distinct allegations of clandestine removal of cotton yarn in the guise of hank yarn over a longer period. The earlier notice was limited to confiscation proceedings and duty demand on seized goods for a narrower period, so it did not exhaust the department's right to issue a later, wider notice after completing further inquiry. The later notice was therefore held legal and proper, and the demand, penalties, and confiscation-related findings were sustained.

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Issues: Whether the second show cause notice was barred by limitation on the ground that it was issued on the same set of facts and evidence as the first notice.

Analysis: The first notice was confined to confiscation proceedings and duty demand on the seized goods for a limited period, whereas the second notice was a detailed notice founded on further investigation into alleged clandestine removal of cotton yarn in the guise of hank yarn over a longer period. The two notices rested on different factual foundations, different documents, and different allegations. The earlier notice could not be treated as having exhausted the department's right to issue a later notice after completing fuller investigation and formulation of the wider allegations. The later notice was therefore not rendered time-barred on the pleaded ground.

Conclusion: The second show cause notice was held to be legal and proper and not barred by limitation; the contention of the appellants failed.

Final Conclusion: The demand, penalties, and confiscation-related findings were sustained and the appeals were dismissed.

Ratio Decidendi: A subsequent show cause notice is not barred by limitation merely because some earlier investigation had commenced, where the later notice is based on a distinct, fuller set of allegations and evidence arising from further inquiry.

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