Case: M/s Balaji Trading Co. v. Principal Commissioner, Department of Trade & Taxes, GNCTD

Court: High Court of Delhi
Petition No.: W.P.(C) 12169/2025 & CM Appl. 49636/2025
Date of Judgment: 13.08.2025
Category: GST Registration – Cancellation on Application (Voluntary)
Relevant Provisions:

• Section 29(1)(c), CGST Act – Cancellation on application

• Rule 20, CGST Rules – Procedure for cancellation

• Article 226, Constitution of India

Facts (Paras 3–5)

The petitioner, M/s Balaji Trading Co., had obtained GST Registration No. 07ALPPG8615H2ZT on 04.09.2022. The business was closed on 02.01.2025, and an application for cancellation was filed on the same day vide Application Ref. No. AA070125001729F (Para 4).
The department sought certain additional information on 20.02.2025, which the petitioner duly furnished on 21.02.2025. Despite compliance, no further communication or notice was issued, and the cancellation request remained unprocessed for several months (Paras 4–5).

Questions / Issues (Implied from Paras 3–7)

1. Whether the GST authority can keep a voluntary cancellation application pending indefinitely despite the taxpayer providing all requisitions.

2. Whether a writ of mandamus should be issued directing the department to process the application within a fixed timeline.

Observations of the Court (Paras 5–7)

The Court noted that the petitioner complied with all departmental requisitions and no further notice was issued thereafter (Para 5).
The respondent’s counsel submitted that the cancellation request “would be processed expeditiously” (Para 6).
The Court emphasised that administrative inaction in processing statutory applications undermines the taxpayer’s right to timely adjudication of obligations under the GST Act.

Judgment / Verdict (Paras 7–8)

The Court directed the GST authorities to process the petitioner’s cancellation application within four weeks from the date of the order and in any case not later than 30.09.2025 (Para 7).
The writ petition and pending applications were accordingly disposed of (Para 8).

Classification of the Case under GST Law

GST Registration – Voluntary Cancellation (Section 29 & Rule 20)
The case falls squarely under procedural compliance disputes relating to cancellation of registration upon application.

Between Fine Lines – Practical Takeaways for Trade

The GST department cannot indefinitely delay acting upon a valid and complete cancellation application. Once the taxpayer furnishes all information sought under Rule 20, the department is obligated to pass an order within a reasonable time. Businesses that have ceased operations may invoke writ jurisdiction if cancellation remains pending, as continued registration may trigger unwanted compliance obligations such as return filing and potential late fees.

Summary of Cases Referred

(No external case law was referred in this order. Table provided for structural consistency.)

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”