Source: Bar & Bench

The Bombay High Court set aside a customs decision following concerns about its reliance on allegedly nonexistent, AI-generated Supreme Court judgments. The proceedings concerned Quanta Logistics Pvt Ltd v. Commissioner of Customs (Import-I). Justices MS Karnik and Sandesh D Patil quashed the customs commissioner’s order dated 11 August 2026. Quanta Logistics argued that the customs authority had used AI without independently assessing the matter. Senior Advocate Venkatesh Dhond identified two purported Supreme Court judgments cited in the decision that, according to the report, could not be found in any database. Dhond described those references as possible AI hallucinations.

The Customs department did not provide copies of the cited judgments when Quanta Logistics requested them. Quanta Logistics also invoked the Supreme Court’s 2026 decision in Vijay Ghanshyam Gadiya v. Union of India in support of its objection to unverified AI-generated precedents. The Customs department agreed that the challenged order could be set aside and the matter reconsidered. The High Court consequently quashed the order by consent. The High Court directed Quanta Logistics to appear before the customs authority for a fresh examination of the matter. The reported outcome was reconsideration of the customs dispute; the account describes the suspected AI origin of the citations as a concern raised in the challenge.