They say the use of berley and bait attracts greater numbers of sharks to the area and produces more aggressive behaviour.
PauaMAC5 also challenged the Director-General of Conservation's powers
to authorise shark cage diving.
The High Court held that the Director-General had no power under the act
to authorise shark cage diving.
But that court made no formal finding on whether shark cage diving was nonetheless an offence.
PauaMAC5 took the case to the Court of Appeal which then made its ruling and declaration.
Shark Experience took the matter to the Supreme Court and a decision was released today.
It allowed the appeal and quashed the Court of Appeal's ruling.
"The Court of Appeal's declaration that 'Shark cage diving is an offence under s 63A Wildlife Act 1953' is set aside," today's decision read.
Shark Experience also argued the Court of Appeal's definition over criminalised conduct and was inconsistent with Magna Carta 1297 and the New Zealand Bill of Rights Act 1990.
It submitted the Court of Appeal's declaration should be set aside and sought a declaration that shark cage diving was not unlawful.
PauaMAC5 supported the Court of Appeal's interpretation.
The Attorney-General submitted that a declaration that shark cage diving was an offence was appropriate.
The Supreme Court has unanimously allowed the appeal and set aside the declaration issued by the Court of Appeal.