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Shemaroo Entertainment Limited has informed the exchanges regarding a significant tax order received from the office of the Commissioner (Appeals-II), CGST & Central Excise, Mumbai.
The company disclosed on December 8, 2025, that the Order, dated November 28, 2025, relates to an appeal filed by the company against a previous order from February 05, 2025, which originated from an August 2024 Show Cause Notice.
The core issue outlined in the new Order is the demand and ordered recovery of allegedly inadmissible Input Tax Credit (ITC). The amount demanded for this alleged inadmissible ITC totals Rs. 70.26 crores.
Alongside this recovery, the Order also mandates the collection of alleged interest at the applicable rate, and a penalty equal to the aforementioned tax amount under Section 74 (1) of the CGST Act, 2017.
Furthermore, the authority imposed an additional penalty allegedly amounting to Rs. 63.35 crores under various sections of the CGST and IGST Acts.
Crucially, the Order imposes massive penalties, allegedly amounting to Rs. 133.61 crores each, upon the Joint Managing Director, the Chief Executive Officer, and the Chief Financial Officer of Shemaroo Entertainment Limited under Section 122(1A) of the CGST Act, 2017 and MGST Act, 2017.
Shemaroo has swiftly rejected the Order, stating that the company inter-alia does not accept the levy set out. Based on the company’s assessment, the substantial demand is deemed “not maintainable in law”.
Shemaroo Entertainment Limited is currently reviewing and evaluating all available legal recourse to challenge the Order. The company intends to prefer a further appeal against the said Order before the appropriate judicial forum.
Meenakshi A. Pansari, Company Secretary & Compliance Officer, signed the disclosure. The filing was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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