Supreme Court of India24 July 2026

Bhandari Scrap Traders v. Union of India

For revenue

SLP TO APPEAL (C) NO. 23931 OF 2026

The ruling in brief

Where purchasing dealers challenged constitutional validity of section 16(2)(c) on ground that ITC could not be denied for supplier's failure to deposit tax, since ITC is a statutory concession and section 41 permits re-availment of reversed ITC upon subsequent payment of tax by supplier, section 16(2)(c) was constitutionally valid and could not be read down

Provisions considered

Section 16, read with sections 41, 53 and 155, of Central Goods and Services Tax Act, 2017/Gujarat Goods and Services Tax Act, 2017 - Rule 37A of Central Goods and Services Tax Rules, 2017/Gujarat Goods and Services Tax Rules, 2017 - Article 14,Article 19(1)(g), Article 265 and Article 300A of Constitution of India, 1950

This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.

The ruling in brief

Provisions considered

Related rulings

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Where assessee availed ITC on purchases from suppliers whose registrations were cancelled prior to invoice dates and ITC was denied due to suppliers’ non- payment of tax, challenge to Section 16(2)(c) as violative of Articles 14 and 19(1)(g) failed, since Supreme Court upheld validity of provision which only requires recipient to establish deposit of tax by supplier; petitioner relegated to appellate remedy

Bhandari Scrap Traders v. Union of India

The ruling in brief

Provisions considered

Bhandari Scrap Traders v. Union of India

The ruling in brief

Provisions considered

Read the full analysis

Satyendra Singh v. L and T Technology Services Ltd

PBS Traders v. Assistant State Tax Officer

Jain Cement Udyog v. Union of India

Read the full analysis