GSTAT Thane Sets Aside ITC Mismatch Demand and Remands Matter for Fresh Hearing Over Natural Justice Breach

Overview

In Vikram Inderjit Kapur Vs Chandrakant Dhondiram Jadhav (GSTAT Thane), Appeal No. APL/10/THN/2026, the Goods and Services Tax Appellate Tribunal, State Bench Thane, decided on 7 October 2026 that an input tax credit (ITC) demand founded on an alleged mismatch could not stand where the assessee was never given the particulars of the mismatch and was not properly heard. The orders of the adjudicating authority and the first appellate authority were set aside, and the matter was sent back for a fresh, reasoned decision.

Background of the Dispute

• The State GST Department disallowed ITC on the ground that the credit claimed did not match the available data.
• A show cause notice was issued, and the adjudicating authority confirmed the proposed ITC demand in its Order-in-Original.
• The assessee's appeal before the first appellate authority was dismissed.
• The assessee then approached the Tribunal.

What the Assessee Argued

Shri Surinder Mehra, appearing for the assessee, raised three points: