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Issues: (i) Whether the First Appellate Authority was justified in condoning the delay in preferring appeals beyond the maximum condonable period under Section 107(4) of the Central Goods and Services Tax Act, 2017; (ii) Whether the Department's appeals were maintainable after it had implemented the impugned orders by revoking the cancellation of the taxpayers' registrations; and (iii) Whether failure to seek revocation under Rule 23 of the Central Goods and Services Tax Rules, 2017 precluded the taxpayers from pursuing an appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
Issue (i): Whether the First Appellate Authority was justified in condoning the delay in preferring appeals beyond the maximum condonable period under Section 107(4) of the Central Goods and Services Tax Act, 2017.
Analysis: Section 107(1) prescribes the ordinary limitation period for appeal, while Section 107(4) permits condonation only within the further statutorily specified period. A High Court's discretionary relief under Article 226 of the Constitution of India, granted on the facts of a writ proceeding, cannot enlarge the statute-bound jurisdiction of the First Appellate Authority. Equity follows the law and cannot override an express outer limit of limitation.
Conclusion: The question is answered in the negative. The First Appellate Authority lacked jurisdiction to condone delay beyond the statutory outer limit, and such condonation was ultra vires. This issue favours Revenue.
Issue (ii): Whether the Department's appeals were maintainable after it had implemented the impugned orders by revoking the cancellation of the taxpayers' registrations.
Analysis: The Department had implemented the impugned orders, restored the registrations, and thereby enabled the taxpayers to resume business and undertake subsequent transactions. This subsequent development materially altered the position between the parties. No effective relief could be granted through a challenge to orders that had already been acted upon without addressing the consequences of restoration.
Conclusion: The question is answered in the negative. In the circumstances, the Department could not maintain its challenge to the implemented orders. This issue favours the assessee.
Issue (iii): Whether failure to seek revocation under Rule 23 of the Central Goods and Services Tax Rules, 2017 precluded the taxpayers from pursuing an appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
Analysis: Filing an application for revocation under Rule 23 was not practically available after expiry of the prescribed period because the common portal did not permit such filing. The appellate remedy under Section 107 operates independently, and inability or failure to pursue revocation cannot extinguish the statutory right to challenge cancellation through appeal.
Conclusion: The Department's objection based on Rule 23 is rejected. The taxpayers were not barred from pursuing their statutory appellate remedy. This issue favours the assessee.
Final Conclusion: Although the condonation beyond the statutory limit was legally impermissible, the Department's implementation of the orders and restoration of registrations foreclosed an effective challenge in the present circumstances.
Ratio Decidendi: A statutory appellate authority cannot enlarge its time-condonation jurisdiction beyond an express statutory outer limit by relying on case-specific relief granted by a constitutional court in writ jurisdiction.
Statutory appeal limitation prevents condonation beyond the prescribed outer period, while registration restoration can defeat a departmental challenge.
Statutory appellate limitation confines the First Appellate Authority's power to condone delay to the expressly prescribed outer period; discretionary writ relief cannot expand that jurisdiction. Implementation of registration-restoration orders may make a departmental challenge ineffective where registrations have been restored and subsequent business transactions enabled, absent consideration of restoration's consequences. The revocation process for cancelled registration and the statutory appellate remedy operate independently: where portal restrictions prevent a delayed revocation application, failure to seek revocation does not extinguish the right to appeal against cancellation. Equity cannot override an express statutory limitation period.
Maintainability of departmental appeal after restoration of GST registration Condonation of delay in GST registration - cancellation appeals - Statutory limits on appellate jurisdiction - Authority of the First Appellate Authority to condone delay beyond the outer statutory limit for appeals against cancellation of GST registration - HELD THAT: - The First Appellate Authority, being a statutory authority, was bound by the limitation and condonation limits prescribed by the Act. Directions issued by a High Court in exercise of its extraordinary constitutional jurisdiction, having regard to the facts of particular cases, could not enlarge the statutory appellate authority's jurisdiction or permit equity to override an express limitation. [Paras 18, 19, 26] The condonation of delay beyond the statutory outer limit, and the consequential allowance of the taxpayers' appeals, were held to be beyond the jurisdiction of the First Appellate Authority. Maintainability of departmental appeals after implementation of appellate orders - Maintainability of the Department's appeals after it implemented the appellate orders by restoring the cancelled GST registrations - HELD THAT: - The Department had acted upon the impugned orders and restored the registrations, thereby altering the respondents' legal and commercial position. As no effective relief could thereafter be granted without addressing the consequences of that restoration, the Department could not seek to invalidate the very orders it had implemented; the appeals were academic and futile. [Paras 20, 21, 22, 26] The Department's appeals were held infructuous and not maintainable, and were disposed of without interference. Final Conclusion: The First Appellate Authority lacked jurisdiction to condone delay beyond the statutory outer limit; however, since the Department had implemented the orders by restoring the registrations, its own appeals were held infructuous and not maintainable.