Autobayng News Team
New Delhi: In a relief to companies operating heavy industrial and construction machinery, the Supreme Court Thursday held that vehicles like dumpers, excavators and surface miners used in factories, mines and other closed premises cannot be treated as motor vehicles and, therefore, are exempt from road tax.
Setting aside a contrary 2011 Gujarat High Court judgement on an appeal filed by UltraTech Cement, the top court said the vehicles used by the company were “special types, precisely construction equipment vehicles which are suitable and are meant for operation and use within the industrial area”.
These vehicles are used inside Ultratech’s factory premises, which are defined as enclosed premises, and not meant for use on roads or public roads, a bench led by Justice Pankaj Mithal held.
These vehicles stood excluded not only from the purview of the Motor Vehicles Act, but also from road tax as provisions under the Seventh Schedule of the Constitution empower states to tax vehicles meant only for road use.
However, the judgement pronounced orally said if such vehicles were found using public roads, then they would not be free from taxation, including liability to road tax and penalties.
The 2011 Gujarat HC order had allowed the levy of road tax on construction equipment. Several companies, including UltraTech, had challenged the tax demands raised by state transport authorities on heavy construction equipment before the HC.
Details of the SC judgement were not available till press time Thursday.
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