Topic

Section 114 Customs Act

2 articlesLatest September 2026
Section 114 Customs Act penalty set aside; AI-generated fake citations barred - SC adopts zero-tolerance for unverified AI material : SC
Case Law Analysis
|Supreme Court of India

Section 114 Customs Act penalty set aside; AI-generated fake citations barred - SC adopts zero-tolerance for unverified AI material : SC

The Supreme Court quashed a Rs 425 crore Section 114 Customs Act penalty after finding the order relied on AI-generated citations that were non-existent or mis-quoted. It imposed a zero-tolerance rule for unverified AI material, rendering such decisions void and urging verification by customs officials and litigants.

Section 114(iii) Customs Act | Penalty Against Customs Broker Invalid Without Proof of Abetment; Documentary KYC Suffices Under CBLR 2018 : Calcutta HC
Case Law Analysis
|Calcutta High Court

Section 114(iii) Customs Act | Penalty Against Customs Broker Invalid Without Proof of Abetment; Documentary KYC Suffices Under CBLR 2018 : Calcutta HC

The Calcutta High Court has ruled that customs brokers cannot be penalized under Section 114(iii) for export valuation discrepancies unless there is direct evidence of abetment, not just procedural lapses. Documentary KYC compliance under CBLR 2018 fulfills due diligence obligations, rendering physical verification and punitive penalties unjustified. This sets a critical precedent for brokers facing arbitrary penalties based on negligence alone.

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