Important point
Even though a trailer by itself is a motor vehicle, the tractor trailer would constitute a ‘goods carriage’ u/s 2(14) and consequently, a ‘transport vehicle’ u/s 2(47) of the Motor Vehicles Act, 1988.

Headnote:Motor Vehicles Act, 1988—Sections 2(14), 2(28), 2(44), 2(46), 2(47) and 66—Karnataka Motor Vehicles Taxation Act, 1956—Sections 16, 3(2), item 10, Part B of the Schedule—Goods carriage—Tractor-trailer for transport of heavy equipments—Liability to pay tax—Appellant transporters were engaged by Central Power Research Institute of India to transport for them six units of transformers from Madras Port to its site at Bangalore—In the matter of transportation, three units of tractor trailer loaded with the equipments entered the State of Karnataka—Taxation authority issued four demand notices calling upon appellant to pay tax u/s 3(2) read with item 10 of Part B of the Schedule to Karnataka Act—Deputy Commissioner of Transport held that although tractor and trailer were separate independent motor vehicles, separately registrable, tractor trailer as a unit was a different category of ‘goods carriage’ requiring permit u/s 66 of the Motor Vehicles Act—Appellant not having obtained permit, was held not entitled to the benefit of exemption u/s 16 of the Taxation Act—Writ petition filed by appellant pleading that its tractors and trailers wereregistered in State of Maharashtra as non transport vehicles and transport vehicles respectively and that they had obtained national permits for their trailers which enabled them to ply trailers in State of Karnataka—Whether taxation authority was right in taking the ‘tractor-trailer’ as a separate and distinct vehicle and denying exemption sought u/s 16 of the Karnataka Taxation Act—(Yes).
Held : Section 2(28) is a comprehensive definition of the words “motor vehicle”. Although, a “trailer” is separately defined under section 2(46) to mean any vehicle drawn or intended to be drawn by motor vehicle, it is still included into the definition of the words “motor vehicle” under section 2(28). Similarly, the word “tractor” is defined in section 2(44) to mean a motor vehicle which is not itself constructed to carry any load. Therefore, the words “motor vehicle” have been defined in the comprehensive sense by the legislature. Therefore, we have to read the words “motor vehicle” in the broadest possible sense keeping in mind that the Act has been enacted in order to keep control over motor vehicles, transport vehicles etc. A combined reading of the aforestated definitions under section 2, reproduced hereinabove, shows that the definition of “motor vehicle” includes any mechanically propelled vehicle apt for use upon roads irrespective of the source of power and it includes a trailer. Therefore, even though a trailer is drawn by a motor vehicle, it by itself being a motor vehicle, the tractor-trailer would constitute a “goods carriage” under section 2(14) and consequently, a “transport vehicle” under section 2(47). The test to be applied in such a case is whether the vehicle is proposed to be used for transporting goods from one place to another. When a vehicle is so altered or prepared that it becomes apt for use for transporting goods, it can be stated that it is adapted for the carriage of goods. Applying the above test, we are of the view that the tractor-trailer in the present case falls under section 2(14) as a “goods carriage” and consequently, it falls under the definition of “transport vehicle” under section 2(47) of the M.V. Act, 1988. In the present matter, we were concerned with taxing of tractor-trailer unit and not with the question as to whether such a vehicle would fall under item 3 or 10 of part B of the schedule to the Taxation Act. Hence, we are not required to go into that question. (Paras 24 and 25)

Judgment

Kapadia, J.—The short question which arises for determination in this civil appeal, by special leave, is whether the taxation authority under the Karnataka Motor Vehicles Taxation Act, 1957 was right in taxing the “tractor-trailer” as a separate and distinct vehicle, different from a tractor and denying exemption sought by the appellant under section 16 of the said 1957 Act on the ground that the tractor-trailer was a distinct category of “goods carriage” requiring permit under section 66 of the Motor Vehicles Act, 1988.

2. The brief facts which are relevant to be noticed as under:

The appellant are transporters of heavy equipments using mechanized carriage depending upon the items to be transported. During the period 8.12.1989 to 31.3.1990, they were engaged by Central Power Research Institute of India (CPRI) to transport for them six units of transformers from Madras Port to its site at Bangalore. The goods were to be lifted from Madras Port and transported to CPRI at Bangalore by vehicular transport mode through the States of Tamilnadu, Andhra Pradesh and Karnataka. In the matter of transportation of over-dimensional cargo, the appellant made use of a drawing vehicle, called by the appellant as a tractor to push/pull the trailers loaded with the abovementioned equipments.

3. Between 8.12.1989 and 11.1.1990, three units of the tractor-trailer carrying transformers entered the State of Karnataka via Tamilnadu and Andhra Pradesh.

4. On 18.1.1990, on account of the entry of three units of tractor-trailer, the taxation authority issued four demand notices calling upon the appellant to pay a sum of Rs. 5.69 lacs as tax under section 3(2) read with item 10 of part B of the schedule to the said 1957 Act on the ground that the said three units were transport vehicles, which required permits under section 66 of the Motor Vehicles Act, 1988 and that the appellant was liable to pay the said tax on the weight(s) of the three units.

5. Being aggrieved by the confirmation of the demand dated 7.2.1990, the appellant moved the Deputy Commissioner of Transport, in appeal.

6. By his order dated 30.6.1990, the Deputy Commissioner of Transport held that although the tractor and the trailer were separate independent motor vehicles, separately registrable, the tractor-trailer as a unit was a different category of “goods carriage” requiring permit under section 66 of the Motor Vehicles Act, 1988, which was not obtained and, therefore, the appellant was not entitled to the benefit of exemption under section 16 of the Taxation Act, 1957.

7. Being aggrieved by the said order dated 30.6.1990, the appellant herein moved the Karnataka High Court by way of writ petition N. 17851 of 1990. In the writ petition, the appellant pleaded that its tractors and trailers were registered in the State of Maharashtra as non-transport vehicles and transport vehicles respectively; that they had obtained national permits for their trailers under section 88(12) of the M.V. Act, 1988 which enabled them to ply trailers in the State of Karnataka; that tractors and trailers, though motor vehicles, were separately defined under section 2(44) and under section 2(46) of the M.V. Act, 1988; that under section 46 of the M.V. Act, a certificate of registration was issued in respect of such vehicles which was effective for the whole of the country (including State of Karnataka) and that if the contention of the department is upheld that the tractor-trailer is a distinct and separate vehicle, distinct from the tractor, it would undermine and violate section 46 of the M.V. Act; that the registration of a vehicle in one State shall be effective and in force throughout India.

8. By judgment and order dated 27.3.1998, the learned single judge held that the tractor by itself was not a “transport vehicle” but if it was used for carrying goods or passengers then it became a “goods carriage” as defined under section 2(14) and consequently, a transport vehicle under section 2(47) of the M.V.

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2005 Supreme(SC) 42

Important pointEven though a trailer by itself is a motor vehicle, the tractor trailer would constitute a ‘goods carriage’ u/s 2(14) and consequently, a ‘transport vehicle’ u/s 2(47) of the Motor Vehicles Act, 1988.

Cases Referred (2)

Important point
Even though a trailer by itself is a motor vehicle, the tractor trailer would constitute a ‘goods carriage’ u/s 2(14) and consequently, a ‘transport vehicle’ u/s 2(47) of the Motor Vehicles Act, 1988.