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 22, 2026] heard the submissions of the petitioner’s counsel, directed that a copy of the petition be furnished to the learned Additional Solicitor General appearing for the Union of India and to the learned counsel for the State of Rajasthan, and listed the matter for further hearing on May 29, 2026, in a challenge to the order of the Hon’ble Rajasthan High Court relegating the petitioner to the statutory appellate remedy. The petitioner has pressed before the Apex Court that Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (“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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