SC Examines Constitutional Validity of Section 16(2)(c) as Bona Fide Recipient Denied ITC

Prime Metals Vs Central Board of Indirect Taxes And Customs & Ors. (Supreme Court of India) The Supreme Court, in a Special Leave Petition arising from a Rajasthan High Court order, took up the issue concerning the constitutional validity of Section 16(2)(c) of the CGST Act in a dispute involving denial of Input Tax Credit (ITC). The petitioner had challenged the Rajasthan High Court’s decision directing it to pursue the statutory appellate remedy under Section 107 of the CGST Act instead of adjudicating its challenge to Section 16(2)(c). The petitioner argued that a literal interpretati...