High Court: Azaria Corp's GST Registration Restored After Debt Settlement

Quick Summary: Azaria Corp LLP lost its GST registration for not submitting their tax forms. After settling their debts, they asked for their registration back. The court decided to give them another chance.

The Case Begins: Azaria Corp vs. The Tax Department

Azaria Corp LLP, with Mr. Vishal Agarwal and his team, faced off against the Deputy Commissioner of State Tax. The problem? Their GST registration was taken away because they didn’t submit their tax forms on time. However, they have since paid all their debts, including a large sum of Rs. 16,46,186 and extra interest and late fees totaling Rs. 6,27,935.

Why the Delay? Azaria Corp's Explanation

Mr. Agarwal explained that the delay happened for real reasons. He said, "The company has paid all the debts, and keeping the registration canceled would harm both the business and the state's income."

The Court's Consideration: Learning From Past Cases

Judge M.S. Sonak mentioned similar cases where the court gave back registrations. The idea was simple: giving back the registration lets the business keep running and paying taxes, which helps everyone.

The State's Position: No Objections, But No Support

Mr. Amar Mishra, speaking for the state, didn’t fight against giving back the registration but didn’t support it either. He left the choice to the court, pointing out that similar past cases were settled with the agreement of the tax department.

The Court's Decision: A Fair Chance

The court decided that keeping the registration canceled was too strict. They decided that if Azaria Corp pays any extra fines within 15 days, their registration would be given back.

"To allow the registration to stay canceled forever seems too severe."

A Charitable Twist: Giving Back to the Community

As part of the solution, Azaria Corp agreed to donate Rs. 50,000 to the Government KEM Hospital. The court accepted this as part of their responsibility to the community.

Final Order: Steps to Getting Back the Registration

• The tax department must tell Azaria Corp of any more debts within 15 days.
• Azaria Corp must pay any extra amounts within 15 days of getting the notice.
• If all conditions are met, the cancellation order from January 2023 will be canceled.

In the end, Azaria Corp got another chance to continue their business, thanks to the court's decision and their commitment to helping the community.