The Hon’ble Supreme Court in M/s Prime Metals v. Central Board of Indirect Taxes and Customs & Ors. [Special Leave Petition (C) No. 18577 of 2026 dated May 29, 2026] on the peculiar facts of the case, declined to interfere with the impugned judgment/order of the Hon’ble Rajasthan High Court relegating the petitioner to the statutory appellate remedy, while leaving open all remedies available to the petitioner to be exercised, and permitted the petitioner to file the appeal with the necessary pre-deposits within a period of eight weeks before the appropriate fora/authority, with the further direction that if the appeal is so filed within the said period, it shall not be dismissed on the ground of limitation. The Hon’ble Apex Court further left open the issues raised in the writ petition relating to the validity of the provisions under Section 16(2) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), to be agitated before the appropriate fora/authority. The petitioner had contended before the Hon’ble Apex Court that Section 16(2)(c) of the CGST Act, if read literally, compels an assessee to perform an impossible act, since the recipient of supply has no control over whether the supplier discharges the tax to the Government, and that denial of Input Tax Credit (“ITC”) on this ground to a bona fide recipient — particularly where the immediate supplier had in fact paid the tax — cannot be sustained.
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