Balaji Trading Co Vs Principal Commissioner (Delhi High Court)
GST department must process registration cancellation applications expeditiously and cannot indefinitely delay
The Hon’ble Delhi High Court in the case of Balaji Trading Co. v. Principal Commissioner, Department of Trade and Taxes, GNCTD [W.P.(C) 12169/2025 & CM APPL. 49636/2025, order dated August 13, 2025] directed the tax department to process the petitioner’s GST registration cancellation application within four weeks where the business was closed and the department had not acted on the pending application despite all sought information being provided.
Facts:
Balaji Trading Co. (“the Petitioner”) was registered under GST on September 4, 2022. The Petitioner closed business operations on January 2, 2025 and applied for cancellation of its GST registration on the same date. The department sought further information on February 20, 2025, which the Petitioner duly provided. However, as of the time of writ petition, no further notices were received nor had any decision been taken by the department regarding the cancellation application. During the writ hearing, the revenue counsel submitted that the matter would be processed expeditiously.
Issue:
Whether the GST department can indefinitely delay action on an application for cancellation of registration once all required information has been furnished, and whether a direction for expeditious disposal is warranted?
