₹425-Crore Penalty Set Aside After Customs Authority Relied on AI-Generated Fake Case Laws: Supreme Court

The Supreme Court has set aside a massive ₹425.27-crore customs penalty after finding that the customs adjudicating authority had relied upon judicial precedents that were either non-existent, carried fake citations or did not support the legal propositions attributed to them. The Court observed that the material appeared to be the result of AI hallucination and warned that artificial intelligence may assist decision-making but cannot replace judicial or adjudicatory application of…