Notice rec.under section 74

1. Review the notice: Identify the specific supplies and periods mentioned.
2. Gather documentation: collet all relevant documents related to the supplies mentioned in the notice.Original e-way bills,new e-way bills generated by the customer,proof of part load material supply, any communication with the supplier regarding the goods not delivered.
3. Verify the facts and prepare response to the department in time.

Ideally the first eway bill should have been cancelled but since it has not been done you can explain your case to the department by submitting reply with documentary evidence that it was generated twice but the first one related only to goods which were not sent for movement and that there is only one supply.

Getting a Section 74 notice is more serious than a regular Section 73 demand because it carries a fraud or suppression allegation. The most important time-bound action: if you pay the tax plus interest plus 25% penalty within 30 days of the notice, proceedings conclude without a full adjudication order. If you wait until after the order, the penalty rises to 50%. Before doing anything, check whether the allegation is actually suppression or a genuine ITC mismatch or rate error, because you can contest the Section 74 classification and argue Section 73 applies (which has a lower penalty structure).
More on the penalty math and notice timelines in this [GST penalty guide](https://taxgarden.in/blog/gst-late-fee-interest-penalty-gstr-3b-gstr-1-gstr-9-guide).