Bombay High Court sets aside Customs ruling that referenced non-existent AI-generated verdicts

The Bombay High Court formally quashed a Customs Department order after determining that the ruling cited fictitious judicial precedents that appeared to originate from artificial intelligence tools. Such errors undermine the integrity of administrative adjudication and burden appellate forums with defective orders. Legal proceedings depend entirely on verifiable precedents to maintain consistency and fairness.

Citing non-existent judgments breaches procedural integrity and forces affected parties to challenge flawed administrative actions. The old position allowed departments to issue orders with unchecked citations, whereas the new position imposes strict judicial intolerance for fabricated or unverified legal references. Tax professionals and legal practitioners must independently verify every citation before submitting documentation or relying on departmental rulings.

Auditors and compliance teams should scrutinize administrative orders carefully for anomalies in case law references. Bottom line: Always cross-verify every judicial citation to protect client filings from severe legal invalidation.