It looks like this specific serial part received from the PO has been already used for some purpose and inventory transactions have been created for that. Therefore, system is not allowing to cancel the receipt. 

Yes, those qty has been delivered through customer order. I have performed RMA and returned the qty on the same location, same lot batch no, and same serial no.

Then this error message was coming.

Then I have removed the qty from this location through issue invetory part and then added again on the same serial no thriugh count in but still same issue is coming

Hi,
I have checked and there are several bug fixes that prevent this error, but doubled checked in RnD reference environment for App9 and same error appears. You can create a Support case for clarification. Perhaps this specific scenario is blocked for any reason, although allowed for example with COUNT-OUT, COUNT-IN transactions (bug id 137558).

Regards,

Pilar