Bombay HC Quashes ₹400 Cr GST Penalties on Shemaroo Execs, Limits Personal Liability

• Bombay High Court set aside personal penalties exceeding ₹400 crore imposed on three Shemaroo Entertainment Ltd. executives.
• The court ruled that the proceedings were without jurisdiction, violating statutory requirements and constitutional safeguards.
• Penalties of ₹133.61 crore each on Amit Haria, Hiren Gada, and Atul Maru under Section 122(1A) of the CGST Act were quashed.
• The judgment clarifies that Section 122(1A) applies only to 'taxable persons' and cannot be applied retrospectively to transactions before 2021.
• The ruling emphasizes that personal liability requires proof of retained benefit and direct causation, impacting future GST investigations.