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GUJARAT HC WARNS GST OFFICER FOR CITING NON-EXISTENT CASE

10/03/2026

GUJARAT HC WARNS GST OFFICER FOR CITING NON-EXISTENT CASE

The case of Gujarat High Court, M/S Marhabba Overseas Private Limited v/s Union of India & Ors. (R/Special Civil Application No. 2229 of 2026) that gained significant attention for highlighting the misuse of Artificial Intelligence (AI) by quasi-judicial authorities in passing tax orders.

The petitioner challenged a September 26, 2025, GST order, alleging the Additional Commissioner relied on non-existent or irrelevant case laws.

Senior Counsel highlighted a concerning trend where the impugned order used fabricated or unrelated precedents, seemingly generated by AI without verification.

The petitioner argued that four key defenses were rejected based on these unverified, AI-generated citations.

Held That The Gujarat High Court expressed serious concern over this practice, suggesting guidelines to regulate the use of AI in quasi-judicial decisions.

The court took a stern view of blindly relying on AI-generated citations, viewing it as a violation of fair adjudication.