Statutory appeal limitation prevents condonation beyond the prescribed outer period, while registration restoration can defeat later departmental challenges.
Section 107 confines an appellate authority's power to condone delay to the prescribed outer period; equitable considerations or writ relief under Article 226 cannot enlarge that statutory jurisdiction. Failure to seek registration revocation within the Rule 23 period does not remove the independent appellate remedy against cancellation where portal functionality prevents timely revocation. Restoration of registrations pursuant to appellate orders enables resumption of business and renders subsequent departmental challenges ineffective unless the consequences of implementation are addressed. Statutory limitation therefore governs condonation, while implemented registration restoration remains unaffected.
Issues: (i) Whether the First Appellate Authority could condone delay in filing an appeal beyond the outer limit prescribed by Section 107(4) of the Central Goods and Services Tax Act, 2017; (ii) Whether the Department could maintain its appeals after implementing the impugned orders by restoring the registrations; (iii) Whether expiry of the period under Rule 23 of the Central Goods and Services Tax Rules, 2017 barred recourse to the appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017.
Issue (i): Whether the First Appellate Authority could condone delay in filing an appeal beyond the outer limit prescribed by Section 107(4) of the Central Goods and Services Tax Act, 2017.
Analysis: Section 107(1) prescribes the ordinary limitation for an appeal, while Section 107(4) permits condonation only for the further statutorily limited period on sufficient cause. The First Appellate Authority, as a statutory authority, could exercise jurisdiction only within those limits. Orders of a High Court granting relief under Article 226 of the Constitution of India in the particular facts of writ proceedings could not enlarge the Authority's statutory power. Equitable considerations cannot override an express limitation provision.
Conclusion: The First Appellate Authority lacked jurisdiction to condone delay beyond the outer statutory limit; this issue was decided in favour of Revenue and against the assessees.
Issue (ii): Whether the Department could maintain its appeals after implementing the impugned orders by restoring the registrations.
Analysis: The Department had acted upon the impugned orders, restored the registrations, and thereby enabled the assessees to resume business and undertake transactions. That implementation was a material subsequent event which crystallised the parties' position. The Department could not seek annulment of the same orders without addressing the consequences of the restoration, and no effective relief could be granted through the appeals.
Conclusion: The Department could not maintain the challenges in the circumstances after implementing the impugned orders; this issue was decided in favour of the assessees.
Issue (iii): Whether expiry of the period under Rule 23 of the Central Goods and Services Tax Rules, 2017 barred recourse to the appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017.
Analysis: Since the common portal did not permit an application for revocation after expiry of the prescribed period, compliance with Rule 23 was not practically available. The remedy of appeal under Section 107 operated independently, and non-availment of revocation under Rule 23 did not extinguish the right to challenge cancellation through an appeal.
Conclusion: Expiry of the Rule 23 period did not bar the assessees from pursuing the appellate remedy; this issue was decided in favour of the assessees.
Final Conclusion: Although the condonation of delay beyond the statutory limit was declared jurisdictionally impermissible, the restored registrations and the legal position resulting from their implementation were not unsettled.
Ratio Decidendi: A statutory appellate authority cannot extend an expressly prescribed outer limit for condonation of delay by relying on equitable relief granted by a High Court in exercise of jurisdiction under Article 226 of the Constitution of India.