2026-VIL-05-SC
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VAT Supreme Court Cases

Gujarat Motor Vehicles Tax Act, 1958 – Taxability of Heavy Earth Moving Machinery or Special Service Vehicles as "Motor Vehicles" under Motor Vehicles Act, 1988 - Appellant used various heavy earth moving machinery and special service vehicles such as Dumpers, Loaders, Excavators, Surface Miners, Dozers, Drills, Rock Breakers etc. for its manufacturing activities at its cement plants. The Transport Officer directed the appellant to get these vehicles registered and pay road tax under the Gujarat Motor Vehicles Tax Act, 1958 - The appellant contended that these vehicles were not "motor vehicles" within the meaning of Section 2(28) of the Motor Vehicles Act, 1988 as they were off-road equipment meant for use only within the factory premises and not on public roads - Whether the heavy earth moving machinery or special service vehicles used by the appellant are "motor vehicles" within the meaning of Section 2(28) of the Motor Vehicles Act, 1988 and are liable to be taxed under the Gujarat Motor Vehicles Tax Act, 1958 – HELD - The vehicles used by the appellant are "special type of vehicles" or "construction equipment vehicles" which are adapted for use only within the factory or enclosed premises and not on public roads. Therefore, they are excluded from the definition of "motor vehicles" under the second part of Section 2(28) of the Motor Vehicles Act, 1988 - The first part of Section 2(28) defines "motor vehicle" in a broad manner, but the second part specifically excludes "a vehicle of a special type adapted for use only in a factory or in any other enclosed premises" from the definition. The various certificates from the manufacturers and experts stating that the vehicles are meant for off-road use substantiated the appellant's contention - Additionally, the charging provision under Section 3 of the Gujarat Motor Vehicles Tax Act, 1958 does not prescribe any rate of tax for "construction equipment vehicles", further indicating that such vehicles are not intended to be taxed under the Act. The Entry 57 of List II of the Seventh Schedule, permits taxation of vehicles "suitable for use on roads" and the vehicles in question, being off-road equipment, are not chargeable to tax - The heavy earth moving machinery and special service vehicles used by the appellant are not "motor vehicles" under the Motor Vehicles Act, 1988 and are not liable to be tax under Gujarat Motor Vehicles Tax Act, 1958 – The appeal is allowed
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