Is the power exercised to issue N/N. 10/2019 CT valid? - Severe Implications! (Сan ALL exclusive suppliers of goods (including TIP FEBB) across the country enjoy the ₹40L threshold limit?)

[Madhusudan Mishra]

If it is in my interest, nothing matters! Benefit provided (with conditions and limitations) without exercising a valid jurisdiction is invalid and cannot be claimed in a court of law as well the limitations are inoperative.

3rd Proviso to S.22(1) confers the jurisdiction to enhance (with conditions and limitations) the threshold limit for registration to ₹40 Lakh (for specific suppliers).

S.23 heads as "Persons NOT liable for registration" and accordingly if you look into the drafting of the same you will find the exact purpose getting resolved. Before FA 23, S.23(2) didn't have jurisdiction to prescribe for "conditions and restrictions" while granting any exemption and even with the retrospective effect of amendment along with a "non-contrary" clause, it cannot bypass a special provision.

Limitations are not equal to Restrictions. Exclusion from a benefit is a limitation and not a restriction. S.23(2) can only restrict but not limit the "specified persons" from the benefit of extended limit via N/N. 10/2019 CT. In that sense, the "limitations" of this notification are void ab initio (being non-jurisdictional) and even the "specified persons" can enjoy the extended threshold.

They should come out with proper notification by exercising the correct jurisdiction to "limit" the benefit exserted by the legislature.