Shemaroo Entertainment Gets Relief as Bombay HC Sets Aside Rs 133.61 Crore Penalty:

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.

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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.

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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.