Shemaroo Entertainment Gets Relief as Bombay HC Sets Aside Rs 133.61 Crore Penalty
Shemaroo Entertainment Limited, a well-known Indian media and entertainment company, has received major relief from the Bombay High Court. In an order dated February 25, 2026, the High Court allowed the writ petition filed by the company challenging the GST penalty proceedings.
Background of the Case
The GST department had alleged that the company had wrongly claimed Input Tax Credit (ITC) worth Rs. 70.26 crore. Therefore, the tax authority issued show cause notices and GST orders for the recovery of inadmissible ITC along with interest and a penalty amount equal to the tax amount under Section 74(1) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017.
The total penalty of Rs 133.61 crores was levied on the Joint Managing Director, Chief Executive Officer and Chief Financial Officer of the Company under Section 122(1A) of the CGST Act, 2017 and MGST Act, 2017.
Bombay High Court’s Order
The Bombay High Court examined the matter and ruled in favor of Shemaroo, holding that the show cause notice and the GST order against the company’s concerned officers were issued without proper jurisdiction.
As per the court, the action taken against the Joint Managing Director, Chief Executive Officer and Chief Financial Officer of the company was without jurisdiction and unsustainable in law. Therefore, the said notice and the order were set aside by the Bombay High Court.
Key Detail of the High Court’s Order
| Particulars | Details |
| Court Authority | Bombay High Court |
| Order Date | February 25, 2026 |
| Penalty Amount | Rs. 133.61 crores each |
| Legal Provision | Section 122(1A) of CGST Act, 2017 and MGST Act, 2017 |
Financial Impact
In the regulatory filing, the company clarified that there is no major financial impact on the company due to this order since it was a favourable court judgement.
Company’s Disclosure Compliance
The above disclosure was made by the company under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
