Petition for Special Leave to Appeal (C) No(s). 18577/2026, arising from High Court judgment dated 29‑04‑2026 in DBCWP No. 3729/2026 (Rajasthan, Jaipur).
Court: Supreme Court of India.
Order dated 22‑05‑2026; hearing held on 22‑05‑2026.
IA Nos.: 161412/2026 (exemption from filing C/C), 161410/2026 (exemption from filing O.T.), 161414/2026 (permission to file additional documents/facts/annexures).
Parties Involved
Petitioner: M/S Prime Metals.
Respondent: Central Board of Indirect Taxes and Customs (CBIC) and others.
Petitioner's counsel: Mr. Jatin Harjai, Mr. Rohan Aggarwal, Ms. Nikshubha Sharma, Mr. Vatsalya Vigya (Advocate on Record).
Respondent's counsel: Not listed.
Additional Solicitor General: Mr. Raghavendra P. Shankar (to receive copy).
State counsel: Ms. Nidhi Jaswal (to receive copy).
Bench: Hon’ble Mr. Justice K.V. Viswanathan, Hon’ble Mr. Justice Vijay Bishnoi.
Issues / Allegations / Violations
Petitioner challenges the validity of Section 16(2) of the Central Goods and Services Tax Act, 2017, specifically clause 16(2)(c) concerning input tax credit eligibility.
Argument: Section 16(2)(c) imposes an impossible requirement on the assessee to verify that the supplier has actually paid tax, which is beyond the assessee’s control.
Claim: Immediate/preceding supplier paid tax, but an alleged prior supplier was a fake entity that did not pay tax; petitioner asserts this should not prejudice the assessee.
Findings & Observations
The Court heard counsel for the petitioner and noted the contention that the High Court erred by directing the petitioner to an alternative remedy.
No substantive legal findings were recorded in the order; the matter was adjourned for further hearing.
Penalties / Settlements / Directions
No monetary penalties or settlements were imposed at this stage.
Corrective Actions & Future Obligations
The Court directed that a copy of the petition be served to Additional Solicitor General Mr. Raghavendra P. Shankar and to State counsel Ms. Nidhi Jaswal.
The matter was listed for a further hearing on 29‑05‑2026.
Final Ruling & Enforcement
The order dated 22‑05‑2026 primarily directed service of the petition to the specified counsel and scheduled the next hearing for 29‑05‑2026. No final determination on the merits was made.
