Heavy Earth Moving Machinery, intended for off-road use only, do not qualify as 'motor vehicles' under the Motor Vehicles Act and are not subject to taxation, as confirmed by expert certifications.

JUDGMENT :

PANKAJ MITHAL, J.

1. Heard Shri P. Chidambaram, senior counsel appearing for the appellant-Ultratech Cement Ltd. in Civil Appeal Nos. 3352-3353/2017 and Shri Nakul Dewan, senior counsel appearing for the appellant in Civil Appeal Nos. 3357 and 3358/2017. Shri K. Parameshwar, senior counsel has been heard in opposition on behalf of respondent-State of Gujarat.

2. All the aforesaid four civil appeals are based on similar facts and raises a common question of law, namely; whether Heavy Earth Moving Machinery or special services vehicles or any construction equipment vehicles such as Dumpers, Loaders, Excavators, Surface Miners, Dozers, Drills, Rock Breakers etc. are “motor vehicles” within the ambit of Section 2 (28) of the MOTOR VEHICLES ACT , 1988¹[Hereinafter referred to as ‘the Act’] and are liable to be taxed under the Gujarat Motor Vehicles Tax Act, 1958²[Hereinafter referred to as ‘the GUJARAT TAX ACT ’].

3. The Civil Appeal Nos.3352-3353/2017 are the leading appeals and, therefore, the necessary facts in respect of those appeals only are being narrated for the sake of convenience.

4. The appellant-Ultratech Cement Ltd. is a public limited company engaged in manufacturing and marketing of clinker and cement products. It has two cement plants known as Gujarat Cement Works and Narmada Cement Works in Gujarat. In connection with the manufacturing work at the above two plants, it uses various Heavy Earth Moving Machinery/construction equipment or special services vehicle.

5. In Civil Appeal Nos.3352-3353/2017, the vehicles used are predominantly Dumpers and Loaders. In Civil Appeal No.3357/2017, the vehicles are Excavators and Surface Miners whereas in Civil Appeal No.3358/2017, the vehicles used are Dozers, Drillers, Rock Breakers, Excavators and Surface Miners.

6. The Regional Transport Officer, Bhuj, on 04.06.1996 issued a letter acknowledging that the Dumpers used by the appellants within the private premises do not require registration under the Act. However, later on the Transport Commissioner published a press advertisement in Gujarati Daily ‘Sandesh’ on 20.11.1999, directing registration of all special service vehicles including Dumpers as is mandated by Section 39 of the Act and that the appellants are required to pay road tax on those vehicles under the GUJARAT TAX ACT .

7. Pursuant thereto, in January 2000, the Regional Transport Officer even conducted an inspection of the vehicles used by the appellant and directed the appellant to get them registered and pay tax under the GUJARAT TAX ACT .

8. The appellant protested against it and replied to the Transport Commissioner on 02.02.2000 that these vehicles were not strictly “motor vehicles” as defined under Section 2(28) of the Act and, therefore, they are neither required to be registered nor chargeable to tax under the GUJARAT TAX ACT . The Transport Commissioner refused to accept the plea taken by the appellant and insisted for the registration of vehicles and payment of road tax.

9. It may be worth noting that the vehicles so used by the appellants were not meant to be used “on-road”. They were transported to the work premises of the appellant in a dismantled condition on trailers and were confined to use within the factory/enclosed premises.

10. M/s Bharat Earth Movers Limited, the manufacturers/suppliers of the said vehicles, certified by their letter dated 23.03.2000 that they have been manufacturing and supplying heavy duty Dumpers amongst other range of products for operating in mining/industrial off-road activities. These products/vehicles that are manufactured and supplied by them are designed as vehicles of a special type to be adopted for use only in mining and industrial off-road operations and are not meant for use on- road.