Bombay High Court Asks Centre, Maharashtra to Decide Imagicaaworld’s Tax Relief Plea Within Two Months

The Bombay High Court has asked the Central government and the Government of Maharashtra to make a quick decision on a request made by Imagicaaworld Entertainment Ltd. However, the court did not give any opinion on who is right or wrong in the dispute.

In its order dated February 12, 2026, a bench of Justices G.S. Kulkarni and Aarti Sathe said the matter involves government policy and requires discussions between different departments. The court directed the authorities to decide the company’s request originally submitted on January 11, 2024, as soon as possible, preferably within two months.

Imagicaaworld Entertainment, earlier known as Adlabs Entertainment, runs the Imagicaa theme park and Aquamagica water park in the Raigad district of Maharashtra. These projects were classified as “mega projects” under the state’s Tourism Policy of 2006.

Under certificates issued in 2013 and 2015, the company was promised entertainment tax (ET) exemptions worth around Rs 724.39 crore for the theme park and Rs 101.6 crore for the water park for 10 years.

The company said that when the Goods and Services Tax (GST) was introduced in July 2017, the old entertainment tax system ended. Because of this change, it could not fully use the tax benefits that were promised earlier. The benefit period for the theme park ended in June 2025, and for the water park it will end in May 2027.

The company also said that its parks were shut for long periods during the Covid-19 pandemic, which affected its earnings. It had asked the government to extend the benefit period and provide other relief, including refunds.

In 2020, the state allowed refunds of SGST based on recommendations of a committee. Later, in October 2023, the state extended the incentive period by two years due to Covid disruptions. However, the company argued that the main issue, lower GST rates compared to the earlier 15% entertainment tax, has still not been properly addressed.

The state government told the court that it will consider the company’s request and decide whether further extension should be given. The court accepted this and said the tourism and finance departments must discuss the matter and give the company a fair hearing before making a decision.

The court made it clear that it has not expressed any opinion on the merits of the case and has left all issues open for the government to decide.