Partha Tribedi Vs Vivek Ranjan (GSTAT Kolkata)
Summary: GSTAT Kolkata allowed the appeal of Shri Partha Tribedi and set aside the first appellate order sustaining GST demand, interest and penalty arising from a search conducted at the taxpayer’s premises. The Tribunal found it undisputed that no statutory show cause notice had been issued before tax and penalty were determined under Section 74 of the WBGST Act. Examining Section 74(1), Section 74(9) and Rule 142, the Tribunal held that service of a statutory SCN is a mandatory step because it enables the taxpayer to know the allegations, amount demanded and foundational facts and to submit an effective representation before adjudication. GSTAT specifically held that even Forms GST DRC-01 and GST DRC-02 cannot substitute the statutory notice contemplated by Sections 73 and 74.
It relied upon Arcelormittal Nippon Steel India Ltd. Vs Assistant Commissioner for the importance of a clear SCN containing foundational facts, and upon Metal Forgings and another vs. Union of India and others for the proposition that letters, orders, suggestions, advice or other communications cannot be treated as the statutorily required show cause notice. GSTAT also referred to the Supreme Court’s decision in M/S Tata Steel Limited vs Union of India, delivered on 25.08.2026, concerning the requirement that foundational facts supporting allegations of fraud, wilful misrepresentation or suppression must be evident from the notice itself.
