Actor Dulquer Salmaan Files Petition in Kerala High Court Challenging Customs Seizure of His Luxury Land Rover

The Seizure of the Luxury Vehicle

The scandal started when the Customs (Preventive) Commissionerate in Kochi took steps against an imported car of the actor. The authorities of the department confiscated the Land Rover Defender, and this is an SUV that is of high quality and priced high with its off-road features. This confiscation was done by the Customs Act of 1962 which gives authorities the mandate to detain goods which they are convinced have been imported illegally.

The major allegation that the customs authorities make is the allegation of under-valuation. This implies that the amount that the car had been declared as in the importation documents was far less than what the car valued at in the market. In doing this, the importer would have paid significantly lower custom duty than required by the law and the government would have lost revenue. The department is currently investigating into the issue in order to establish the actual amount of the supposed duty evasion.

Understanding Customs Duty and Vehicle Imports

To appreciate the case, one should be aware of the taxation of importation of vehicles in India. Customs duty is a form of indirect tax which is imposed on all goods which are imported in the country. These taxes are very high when luxury goods are involved, more so the fully imported cars referred to as Completely Built Units (CBUs). The purpose of the duty system is to cushion the domestic car industry and raise revenue.

The duty on an imported vehicle could be in many cases more than 100 percent of the original cost of the vehicle which effectively doubles the cost of the automobile to the Indian consumer. This tax is computed on the assessable value of the vehicle, comprising of the price, insurance and freight expenses of the vehicle. The tax amount is so high that any effort to under-distinct the value of the vehicle will result in a huge evasion of duty that is considered a serious offense by the authorities.

Dulquer Salmaan’s Legal Challenge

Dulquer Salmaan has approached the Kerala High Court with reference to the seizure. The actor has opposed the actions of the Customs department in his petition as he describes the seizure as arbitrary and unlawful. His lawyers have contended that the necessary formalities to import the automobile were indeed observed and there was no effort to defraud the government regarding the worth of the automobile.

The petition is requesting a court order to quash the seizure notice filed by the officials of the customs. Salmaan has asked the High Court to order the department to hand over his Land Rover Defender to him. His plea must probably focus upon his being a law-abiding citizen and a common taxpayer and his argument must be that the department has violated him and has unjustly hurt his reputation in public.

The High Court’s Initial Response

The Kerala High Court has accepted the Kerala High Court as a petition of the actor. The court has probably taken the first step and admitted the plea and given a formal notice to the Customs (Preventive) Commissionerate. This is the normal course of law as the court calls upon the department of government indicated in the petition to formally respond and explain its version of events.

Customs authorities will now need to submit a counter- affidavit and explain the legal basis of the seizure and provide evidence that they have prepared regarding the alleged undervaluation. The court will then set hearings during which lawyers on both sides of Dulquer Salmaan and the Customs department will present case. The courts will review the facts and the legal laws to determine whether the seizure was reasonable or it infringed the rights of the agent.