ITC Mismatch Requires Invoice-wise Verification- Hearing Mandatory { N.R. Builders vs. Commissioner of Commercial Taxes [2026] 190 taxmann.com 7 (GSTAT – BENGALURU)}
Facts:
ITC was denied solely due to a GSTR-3B vs. GSTR-2A mismatch. The appellant claimed that some ITC related to FY 2017-18 invoices was validly availed in FY 2018-19 within the Section 16(4) time limit. The SCN did not provide a personal hearing date and no ASMT-10 was issued.
Issue:
Whether ITC could be denied merely on the basis of GSTR-2A mismatch, without invoice-wise verification and whether denial of a mandatory personal hearing vitiated the proceedings.
Held:
The demand was set aside and remanded for invoice-wise re-verification. The Tribunal held that GSTR-2A is only a facilitative document and mismatch alone cannot justify ITC denial. Section 75(4) makes personal hearing mandatory where an adverse decision is contemplated. However, absence of ASMT-10 does not by itself invalidate Section 73 proceedings when initiated through an audit reference.
