2026-VIL-106-GSTAT-HYD
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  2. 2026-VIL-106-GSTAT-HYD

SGST Tribunal

GST - Jurisdiction of First Appellate Authority to Condone Delay in preferring appeal – Multiple taxpayers-Respondents whose GST registrations were cancelled for failure to file monthly returns for six consecutive months failed to seek revocation within prescribed thirty-day period and instead filed appeals before First Appellate Authority after expiry of statutory period under Section 107(1) of the CGST Act, 2017 - First Appellate Authority condoned delay by relying upon High Court of Telangana decisions - Whether First Appellate Authority possessed jurisdiction to condone delay beyond maximum period prescribed under Section 107(4) of CGST Act – HELD - Section 107(1) prescribes ordinary period of three months for preferring appeal from date of communication of order, while Section 107(4) empowers First Appellate Authority to condone delay only for further period of one month subject to sufficient cause, making maximum condonable period four months - The First Appellate Authority is creature of statute and must act within four corners of enactment; its jurisdiction is conditioned and circumscribed by provisions of Section 107. While High Court may exercise extraordinary jurisdiction under Article 226 to mould relief and condone delay in interests of justice, such constitutional power cannot by judicial osmosis be transplanted to statutory authority - Orders of High Court rendered in exercise of constitutional jurisdiction in peculiar facts and circumstances of those proceedings cannot enlarge statutory jurisdiction of appellate authority. The principle that equity follows law cannot be invoked by statutory authority to override express legislative prescription - First Appellate Authority exceeded bounds of statutory jurisdiction and exercised power ultra vires Section 107 by condoning delay beyond statutory outer limit – First Appellate Authority lacked jurisdiction to condone inordinate delay in filing appeals - Effect of Departmental Implementation on Maintainability of Appeals - Departmental appeal against order allowing revocation of cancelled registration – Department implemented First Appellate Authority's order by restoring registration of taxpayers who thereafter resumed business operations and continue to carry on legitimate business – Whether Department's appeals remain maintainable after Department has acted upon and implemented impugned orders – HELD - After impugned orders were passed, Department acted upon them and restored registrations of concerned respondents. Having implemented those orders and altered respondents' legal and commercial position, Department cannot now seek to invalidate same orders without addressing consequences of its own action. Restoration of registration is subsequent and material development relevant to adjudication which resulted in practical relief sought by respondents and enabled them to resume business activities and comply with statutory obligations. If appeals were allowed, restored registrations would again become liable to cancellation including with retrospective effect, imperiling validity of genuine transactions undertaken by respondents during intervening period, equally without any default on their part - Department, having accepted and implemented impugned orders by restoring registrations, has forfeited practical opportunity to challenge them at belated stage. Department cannot simultaneously rely upon impugned orders for restoring registrations and seek their annulment without explaining or reversing consequences of restoration – Further, Even if departmental objections regarding statutory limitation accepted in principle, no effective relief can presently be granted as department has already acted upon orders and implemented them. Proceedings are futile and constitute avoidable invocation of tribunal's jurisdiction – Department's appeals are disposed of as not maintainable having regard to implementation of impugned orders and restoration of registrations.
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