Bombay High Court quashes GST notices against Shemaroo JMD, CEO and CFO

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New Delhi: The Bombay High Court has set aside GST-related show cause notices and an order-in-original issued against the company’s Joint Managing Director, Chief Executive Officer and Chief Financial Officer.

In its stock exchange filing dated February 25, 2026, the company said the court held that the proceedings against these officers, in their capacity as employees, were “without jurisdiction and unsustainable in law”.

The filing said the notices and order related to an alleged penalty of Rs 133.61 crore each on the JMD, CEO and CFO under Section 122(1A) of the CGST Act, 2017 and MGST Act, 2017.

The matter is part of a wider GST dispute involving alleged inadmissible input tax credit (ITC) of Rs 70.26 crore, along with interest and a penalty equal to the tax amount under Section 74(1) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017, the company said.

It also referred to an alleged penalty of Rs 63.35 crore under Sections 122(1)(ii) and (x) and Section 122(2)(b) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017.

In December 2025, Shemaroo had appealed against the order. It had said it “does not accept the levy” and that the demand is “not maintainable in law”.

Shemaroo said the High Court order has “no material financial impact” on the company.