IMPORTANT POINT
Dumpers being used within the mining areas on the roads prepared by the mining owners are motor vehicles and are taxable within the ambit of the Orissa Motor Vehicles Taxation Act.

JUDGMENT

Pattanaik, J.-This Special Leave Petition is directed against the judgment of the Division Bench of the Orissa High Court dated 10.4.1996 passed in Original Jurisdiction case no. 811 of 1996. The question for consideration before the Orissa High Court was whether the Dumpers belonging to the petitioner which are used within the mining areas are taxable as Motor Vehicle under the provisions of Orissa Motor Vehicles Taxation Act (referred to as "The Taxation Act"). The Orissa High Court relying upon the decision of this Court in the case of Central Coal fields Ltd. v. State of Orissa & Batch1 dismissed the Writ Petition. When the present application was listed for admission, the same was dismissed by us. But Since Mr. Shanti Bhushan, learned senior counsel appearing for the petitioners had re-argued the matter at length for a considerable period and contended that the decision of this Court in Central Coal Field s case (supra) has no application we had indicated that a reasoned order will follow and hence the reasons are being given for dismissing the Special Leave Petition.

2. Under Section 3 of the Taxation Act, tax shall be levied on every motor vehicle used or kept for use within the State at the rate specified in the Schedule.

3. The expression "Motor Vehicle" means any wheeled conveyance which is propelled mechanically is a motor vehicle if it is adapted for use upon the road irrespective of whether the power of propulsion is transmitted thereto from an internal or external source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises. Because of the latter part of the definition of Motor Vehicles, the petitioner had made out the case before the Orissa High Court that the dumpers in question are so heavy that they cannot move on the public road and, therefore, are not taxable under the Taxation Act but the High Court had negatived the said contention.

4. Mr. Shanti Bhushan, learned senior counsel reiterated the same arguments in this Court and essentially raised two contentions:-

(1) the Dumpers which have been taxed under the Taxation Act are used only within the mining areas and are not capable of being used in the public roads and, therefore, cannot be held to be Motor Vehicles and consequently are not taxable under the Taxation Act.

(2) secondly, the learned senior counsel argued that the tax on vehicles being compensatory in nature, levy of such tax can be sustained only on the ground that the vehicles used the roads for which tax is levied. If the vehicle in question did not use the roads and yet tax is levied on the same, the said levy is liable to be struck down.

5. In elaborating the first argument Mr. Shanti Bhushan took us through some of the provisions of the Motor Vehicle Rules which prescribe the dimension of such vehicle in the matter of width, length or height and which prohibits the vehicles beyond such dimensions to be used on public roads. In this connection the learned senior counsel brought to our notice Rules 92 and 93 of the Motor Vehicles Rules (hereinafter referred to as "the Rules" which are quoted hereinbelow in extenso:-

Rule 92

General : (1) No person shall use or allow to be used in any public place any motor vehicle which does not comply with the provisions of this Chapter.

(Provided that nothing contained in this rule shall apply to vehicles manufactured prior to the coming into force of the Central Motor Vehicles (Amendment) Rules, 1993)

Nothing in this Rule shall apply to a motor vehicle -

(a) which has been damaged in an accident or to a vehicle stopped or impeded owing to shortage of fuel or other temporary defects while at the place at which the accident or defect occurred;

(b) which is defective or damaged and is being removed to the nearest