Statutory appellate limitation restricts condonation despite equitable writ relief, while implemented registration restoration limits later departmental challenge.
Section 107 confines the First Appellate Authority's power to condone delay to the expressly prescribed outer limit; equitable relief under Article 226 cannot enlarge that statutory jurisdiction. Condonation beyond that limit is therefore without jurisdiction. Restoration of taxpayers' registrations following implementation of appellate orders materially changes the parties' position, making subsequent departmental relief to unsettle those orders ineffective and potentially disruptive to intervening transactions and input-tax-credit consequences. The appellate remedy against registration cancellation remains independent of the revocation mechanism under Rule 23, so inability to seek revocation through the common portal does not extinguish the right to appeal.
Issues: (i) Whether the First Appellate Authority could condone an appeal filed beyond the outer limit in Section 107(4) of the Central Goods and Services Tax Act, 2017; (ii) Whether the Department could challenge the appellate orders after implementing them by restoring the taxpayers' registrations; and (iii) Whether non-compliance with Rule 23 of the Central Goods and Services Tax Rules, 2017 barred the taxpayers from pursuing appeals under Section 107 of the Central Goods and Services Tax Act, 2017.
Issue (i): Whether the First Appellate Authority could condone an appeal filed beyond the outer limit in Section 107(4) of the Central Goods and Services Tax Act, 2017.
Analysis: Section 107(1) prescribes the ordinary period for filing an appeal, and Section 107(4) permits condonation only within the further period expressly stipulated on sufficient cause. A statutory appellate authority is confined to this legislatively prescribed jurisdiction. Directions or relief granted by a High Court under Article 226 of the Constitution of India, in exercise of extraordinary and equitable jurisdiction, cannot enlarge the statutory authority's power to condone delay. Equity follows the law and cannot override an express outer limitation.
Conclusion: The First Appellate Authority lacked jurisdiction to condone delay beyond the maximum period under Section 107(4); such condonation was coram non judice and ultra vires. This issue is in favour of Revenue.
Issue (ii): Whether the Department could challenge the appellate orders after implementing them by restoring the taxpayers' registrations.
Analysis: The Department implemented the appellate orders, restored the registrations, and permitted the taxpayers to resume business and undertake transactions. This subsequent development materially altered the parties' position. Setting aside the orders thereafter could expose the restored registrations and intervening genuine transactions, including related input-tax-credit consequences, to uncertainty, while yielding no effective relief to the Department.
Conclusion: The Department could not obtain effective relief against orders that it had already implemented by restoring the registrations. This issue is in favour of the assessee.
Issue (iii): Whether non-compliance with Rule 23 of the Central Goods and Services Tax Rules, 2017 barred the taxpayers from pursuing appeals under Section 107 of the Central Goods and Services Tax Act, 2017.
Analysis: The common portal did not permit revocation applications after expiry of the prescribed period. The appellate remedy under Section 107 is independent, and the inability to invoke the revocation mechanism under Rule 23 does not extinguish the statutory right to challenge cancellation through appeal.
Conclusion: Non-compliance with Rule 23 did not bar the taxpayers from pursuing the statutory appellate remedy. This issue is in favour of the assessee.
Final Conclusion: The statutory limitation on the First Appellate Authority's condonation power was affirmed, but the Department's prior implementation of the appellate orders precluded the restored registrations from being unsettled through these proceedings.
Ratio Decidendi: A statutory appellate authority cannot enlarge an expressly capped period for condonation by relying on equitable relief granted under Article 226, and a Department that has implemented an appellate order by restoring registration cannot subsequently obtain ineffective relief to undo that order without addressing the consequences of its own implementation.