GSTAT Hyderabad: Article 226 Relief cannot broaden FAA’s Statutory Power u/s 107(4)

GSTAT Hyderabad ruled that the First Appellate Authority (FAA), being a creature of statute, cannot condone appeal delay beyond the outer limit prescribed u/s 107(4) of the CGST Act. The Tribunal held that the FAA cannot rely on HC orders passed under Article 226, which exercises a discretionary constitutional jurisdiction, to assume a power of condonation that Section 107(4) expressly withholds. The Tribunal strenuously stated that relief granted in individual writ petitions cannot be treated as a general rule enabling statutory authorities to bypass prescribed limitation. However, since the Department had already implemented the FAA orders by restoring the taxpayers’ GST registrations, pursuant to which they had resumed business and complied with GST requirements, the Tribunal held that the Department’s appeals had become infructuous and were not maintainable. The Tribunal also observed that the Department’s conduct in implementing the FAA orders and subsequently challenging them amounted to serious negligence, while leaving the natural-justice issue arising from the cancellation proceedings open. 

Mandalaneni Srinivasarao - GSTAT Hyderabad (Sep 18, 2026) .pdf