Bombay HC sets aside Rs 400-crore GST penalty on Shemaroo execs
The HC allowed writ petitions filed by Chief Financial Officer Amit Manilal Haria, Chief Executive Officer Hiren Uday Gada and Joint Managing Director Atul Hirji Maru
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Published: Feb 26, 2026 8:37 AM | 1 min read
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The Bombay High Court has set aside a nearly ₹400 crore personal penalty imposed by GST authorities on three senior executives of Shemaroo Entertainment.
The court has ruled that the Central Goods and Services Tax (CGST) Act cannot be invoked against employees who are not “taxable persons”.
The HC allowed writ petitions filed by Chief Financial Officer Amit Manilal Haria, Chief Executive Officer Hiren Uday Gada and Joint Managing Director Atul Hirji Maru and imposed personal liability on the executives.
An identical penalty of Rs 133.61 crore had been imposed on each executive for alleged wrongful availment and passing on of input tax credit of about Rs 133.60 crore between FY18 and FY22.
The judgment said that under the CGST Act a “taxable person” is a person who is registered or liable to be registered under the law. Employees acting in their official capacity cannot be treated as taxable persons in relation to company transactions, the court ruled.
The case is connected to a CGST search conducted in September 2023 over alleged fake invoicing.
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