Balaji Trading Co Vs Principal Commissioner
Date: August 12, 2025
Subject Matter
GST Department to Expedite Registration Cancellation Application
Summary
The Delhi High Court, in the case of Balaji Trading Co. v. Principal Commissioner, Department of Trade and Taxes, has ordered the GST department to process a business's application for registration cancellation within four weeks. The petitioner, Balaji Trading Co., had closed its business operations and applied for cancellation on January 2, 2025. Although the department requested and received additional information in February 2025, no decision had been made by the time the writ petition was filed.
The court noted that the petitioner had provided all the required documents and that no further queries from the department were pending. The revenue counsel for the department also gave an undertaking in court to process the cancellation application "expeditiously".
The High Court disposed of the writ petition with a directive that the petitioner's GST registration cancellation application must be processed and an order passed within four weeks, and in any case, no later than September 30, 2025. This decision, along with others like it, reinforces the principle that when a business has ceased operations and has complied with all requirements under Section 29 of the CGST Act, the department cannot indefinitely delay the cancellation process.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
CM APPL. 49636/2025 (for exemption)
2. Allowed, subject to all just exceptions. Application is disposed of.
W. P.(C) 12169/2025
3. The present petition has been filed by the Petitioner under Article 226 of the Constitution of India, inter alia, seeking issuance of an appropriate writ directing the Respondent to cancel the GST registration of the Petitioner e.f. 2nd January, 2025.
4. The Petitioner had obtained a GST registration No. 07ALPPG8615H2ZT on 4th September, 2022. However, it closed down its business on 2nd January, 2025 and applied for cancellation of registration on 2nd January, 2025 vide application reference no. AA070125001729F. Some information was sought by the GST Department on 20th February, 2025 and the same was replied to by the Petitioner on 21st February, 2025, however, till date, the cancellation has not been processed.
5. Ld. Counsel for the Petitioner submits that no further notice has been received from the GST Department.
6. Ms. Gupta, ld. Counsel for the Respondent submits that the same would be done expeditiously.
7. Accordingly, the present writ is disposed of with the direction that the application for cancellation of the GST registration of the Petitioner be processed within a period of four weeks from today and the order be passed in any case latest by 30th September, 2025.
8. The petition is disposed of in these terms. Pending applications, if any, are also disposed of.