The court also said that the National Company Law Tribunal (NCLT) should decide whether or not spectrum can be sold under the Insolvency and Bankruptcy Code.
While a conclusion was not arrived at, the SC also struck down the government's demand of seeking Rs 4 lakh crore from PSUs for telecom licences.
In its order, the top court had said that no self-assessment can be done on AGR dues and no further objection on its verdict would be entertained.
The Centre had on Monday moved the Supreme Court seeking approval of a formula to allow telecom service providers to make annual installments of around Rs 1.47 lakh crore AGR dues in the next 20 years or more.
The Department of Telecommunications also sought the apex court's nod for a formula arrived at for recovery of dues from telecom companies after detailed deliberation by government and cabinet.
Bharti Airtel has so far paid Rs 10,000 crore of its dues.
The Supreme Court, last Friday, came down heavily on the telecom companies for not paying dues to the tune of Rs 1.47 lakh crore to the government.
The Supreme Court had ordered the telecom companies to pay adjusted gross revenue (AGR) worth Rs 92,000 crore to the government.
These companies said they wanted an open court hearing on their fresh pleas with regard to working out fresh schedule of payment of their dues.
The Department of Telecom (DoT) intends to auction 5G spectrum sometime this year after having already missed its 2019 deadline.
