3 Shemaroo Entertainment staffers get Bombay HC relief in GST case

The dispute originated from an input tax credit (ITC) issue involving Rs 70 crore, which tax authorities alleged Shemaroo had falsely claimed

The Bombay High Court granted interim relief to three employees of Shemaroo Entertainment Limited and stayed coercive action in connection with personal penalty demands of ₹400 crore under the goods and services tax (GST) regime.

 

Tax authorities had issued showcause notices to the employees and subsequently passed orders imposing these penalties under Section 122 (1A) of the Central GST (CGST) Act. The penalties were challenged on constitutional and procedural grounds.

 

According to Section 122(A) of the CGST Act, if a company commits a GST offence such as issuing fake invoices, availing ineligible input tax credit, or suppressing sales, any person