Aayushi, an easy way to do this is to create an escalation on matusetrans. The condition for the escalation would include something like:
issuetype = 'RETURN' and exists (select 1 from item where item.itemnum = matusetrans.itemnum and item.rotating = 1)
You might want to add additional restrictions in the condition such as specifying the storeroom or limiting the query to a transaction dates within the last few days.
Then set up an escalation point that triggers a notification.