2025 (7) TMI 1391 - HC - GST

Power to condone delay - Time limitation - dismissal of appeal having been filed three years and twenty days beyond limitation - HELD THAT - It is not disputed in the present case that delay is of three years and twenty days. The issue is no longer res-integra. The Supreme Court in Union of India (UOI) Vs. Popular Construction Co. reported in 2001 (10) TMI 1044 - SUPREME COURT while adjudicating the issue regarding applicability of Section 5 of 1963 Act for condonation of delay in filing an application under Section 34(3) of the Arbitration and Conciliation Act 1996 considering its earlier decision in Vidyacharan Shukla Vs. Khubchand Baghel 1963 (12) TMI 25 - SUPREME COURT Hukumdev Narain Yadav Vs. Lalit Narain Mishra 1973 (12) TMI 92 - SUPREME COURT held that If there were any residual doubt on the interpretation of the language used in Section 34 the scheme of the 1996 Act would resolve the issue in favour of curtailment of the Court s powers by the exclusion of the operation of Section 5 of the Limitation Act. In case of Chhattisgarh State Electricity Board v. Central Electricity Regulatory Commission 2010 (4) TMI 1031 - SUPREME COURT a two-Judge Bench interpreting Section 125 of the Electricity Act 2003 which is substantially similar to Section 25(1) of the SICA had noticed that The use of the expression within a further period of not exceeding 60 days in the proviso to Section 125 makes it clear that the outer limit for filing an appeal is 120 days. There is no provision in the Act under which this Court can entertain an appeal filed against the decision or order of the Tribunal after more than 120 days. The power of the appellate authority to condone the delay is limited upto thirty days. There is no legal error in the impugned order of the appellate authority the writ petition is dismissed.

Summary

ISSUES:

Whether the appellate authority has the power to condone delay beyond the statutory period prescribed under Section 107(4) of the Central Goods and Services Tax Act, 2017.Whether Section 5 of the Limitation Act, 1963 applies to extend the limitation period beyond the maximum extension allowed under a special statute.The legal effect of statutory language excluding the applicability of general limitation provisions in the context of appeals under special statutes.

RULINGS / HOLDINGS:

The appellate authority's power to condone delay under Section 107(4) of the CGST Act is limited to a further period of one month beyond the initial limitation period; delay beyond this period cannot be condoned.The applicability of Section 5 of the Limitation Act is expressly ousted by the language of Section 107(4), which restricts condonation of delay to a maximum of thirty days, thereby excluding any further extension.The phrase "but not thereafter" in special statutes constitutes an express exclusion of Section 5 of the Limitation Act, preventing courts or authorities from condoning delay beyond the prescribed extended period.

RATIONALE:

The Court applied the principle that when a special statute prescribes a limitation period along with a specific provision for extension on sufficient cause, the general provisions of the Limitation Act, including Section 5, are excluded by implication or express language, as per Section 29(2) of the Limitation Act.Reliance was placed on authoritative Supreme Court precedents interpreting similar provisions under the Arbitration and Conciliation Act, Central Excise Act, Customs Act, Electricity Act, and others, which consistently hold that the power to condone delay is strictly limited to the statutory extension period and Section 5 of the Limitation Act does not apply.The Court emphasized the legislative intent to curtail judicial discretion in extending limitation periods beyond the statutory maximum to ensure finality and certainty in statutory appeals.No dissent or doctrinal shift was noted; the judgment follows established precedent affirming the exclusion of Section 5 of the Limitation Act where special statutes provide specific limitation and extension periods.