The case arose from an order handed by the Further Commissioner on October 8, 2025, imposing a penalty of ₹425.28 crore on Vijay Ghanshyam Gadiya below Part 114 of the Customs Act, 1962. The penalty was imposed for allegedly misdeclaring a consignment of pure diamonds as lab-grown diamonds to draw a decrease tariff.
Gadiya challenged the penalty earlier than the Gujarat Excessive Court docket. Nevertheless, the Excessive Court docket dismissed his problem on January 20, 2026, prompting him to strategy the Supreme Court docket.
Earlier than the apex court docket, Gadiya contended that a number of judgments and articles relied upon by the customs officer had been generated utilizing AI.
