Vehicles designated for factory use are exempt from taxation as 'motor vehicles' under the Entry Tax Act, reaffirming that such classification depends on intended use.

ORDER :

KRISHNAN RAMASAMY, J.

These Writ Petitions have been filed challenging the impugned orders of the respondents dated 02.09.2025, 12.09.2025, 15.09.2025 and 16.09.2025 respectively.

2. The learned counsel appearing for the petitioners would submit that in the present case, the petitioners have purchased AMW Tipper (Dumper) and Hydraulic Mobile Crane [Escort Tipper (Crane)] from M/s.Escorts Construction Equipment Limited, Faridabad and M/s.Asia Motorworks Limited, Gujarat. While bringing those vehicles into the State of Tamil Nadu, the Authorities concerned have levied entry tax in terms of provisions of Section 3 of the Tamil Nadu Tax on Entry of Motor Vehicles to Local Areas Act , 1990 (hereinafter called as 'the Entry Tax Act') by considering the above vehicles as 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act. According to the learned counsel, AMW Tipper (Dumper) and Hydraulic Mobile Crane are not 'motor vehicles' as per the provisions of the Entry Tax Act as well as the Motor Vehicles Act , 1988. By referring Section 3 of the Entry Tax Act, he would submit that entry tax would be levied only for the 'motor vehicles'. In the event, if a vehicle is used only within the premises of the factory or in an enclosed premises, such vehicle would not be considered as motor vehicle. AMW Tipper (Dumper) and Hydraulic Mobile Crane are meant for use only in the factory premises and not on the road and hence, those vehicles are not 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act, so as to levy tax as per Section 3 of the Entry Tax Act. In support of his contentions, the learned counsel relied upon the Judgment of this Court in W.P.(MD)Nos.5691 and 5694 of 2021, dated 15.04.2021, and would submit that the above Judgment would squarely apply to the facts of the present case. He therefore, prayed for allowing these Writ Petitions.

3. The learned Additional Government Pleader appearing for the respondents, by filing counters would submit that, in the present case, the petitioners purchased AMW Tipper (Dumper) and Hydraulic Mobile Crane, which are 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act as well as Section 2 (28) of the Motor Vehicles Act , 1988, so as to enable the respondents to levy tax in terms of provisions of Section 3 of the Entry Tax Act. Thus, the respondents have levied the entry tax. He therefore prayed for dismissal of these Writ Petitions and also requested that the counters of the respondents shall form part and parcel of this order.

4. I have given due consideration to the submissions made on either sides.

5. Now, the issue to be decided is whether, the vehicles, AMW Tipper (Dumper) and Hydraulic Mobile Crane are 'motor vehicles' as defined under the Entry Tax Act as well as the Motor Vehicles Act , 1988 so as to enable the respondents to levy entry tax in terms of Section 3 of the Entry Tax Act. To deal with this aspect, it would be apposite to extract Section 2 (i) of the Entry Tax Act as well as Section 2 (28) as the hereunder:-

"Section 2 (i) of the Entry Tax Act: "motor vehicle" means a motor vehicle as defined in clause (28) of Section 2 of the Motor Vehicles Act , 1988; ;

Section 2 (28) of the Motor Vehicles Act : “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal 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