Res judicata bars a second service tax notice on the same transaction under a different classification.

A second show cause notice demanding service tax on the same transaction under a different service classification was treated as an impermissible re-agitation of the same liability. Because the earlier proceedings had already proceeded on the underlying facts, the later notice sought to reopen the same subject matter through a fresh classification. The principle of res judicata under Section 11 of the Code of Civil Procedure, 1908 was applied to bar such adjudication, and the later demand was found not maintainable.

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Issues: Whether the second show cause notice demanding service tax on the same transaction under a different category was maintainable in view of the earlier proceedings and the principle of res judicata.

Analysis: The appellant had already been proceeded against through an earlier show cause notice on the same underlying transaction. In the impugned proceedings, the adjudicating authority held that the service did not fall under the first proposed category. On that basis, the subsequent notice, issued on the same set of facts but under a different service classification, was examined as an attempt to re-agitate the same liability. The principle of res judicata under Section 11 of the Code of Civil Procedure, 1908 was applied to prevent such adjudication on the same subject matter.

Conclusion: The second show cause notice was held to be not maintainable and the demand under the later classification failed.

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