Fresh show cause notice barred after withdrawal of earlier notices; duty demand and penalty were set aside.

Fresh show cause notices on the same cause of action were impermissible where the High Court had recorded withdrawal of the earlier notices and directed that no further action be taken on them. The Tribunal relied on the earlier judicial determination, later affirmed by the Supreme Court, that the Revenue could not issue renewed notices or confirm duty and penalty without obtaining liberty from the High Court. On the materially identical facts involving the same parties, the fresh notice, demand of duty, and penalty were held unsustainable and set aside in favour of the assessee.

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Issues: Whether the Revenue could issue fresh show cause notices and confirm duty and penalty after the High Court had ordered that no further action be taken on the withdrawn notices.

Analysis: The earlier High Court order expressly recorded that the notices had been withdrawn and that no further action on the withdrawn notices would be taken. The Tribunal had already taken the view in a connected matter, later affirmed by the Supreme Court, that fresh notices on the same cause of action could not be issued unless liberty was obtained from the High Court. As the present matter involved the same parties and a materially identical situation, the Revenue was bound by that earlier judicial determination and could not proceed without proper leave from the High Court.

Conclusion: The fresh notice, demand of duty, and penalty were not sustainable and were set aside in favour of the assessee.

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