Legal provisions involved: Motor Vehicles Act, 1988 (Section 2(28), Section 39), Gujarat Motor Vehicles Tax Act, 1958 (Section 3), and Article 265 of the Constitution of India.

Judgement by: Supreme Court of India

Judge/Bench: Justice Pankaj Mithal and Justice Prasanna B. Varale

Facts

UltraTech Cement used heavy machines like dumpers, excavators and loaders inside its cement plant and mining area. These machines were never driven on public roads and were brought to the site on trucks. Even so, the Gujarat transport department asked the company to register these machines and pay road tax. The High Court supported the State’s view, so UltraTech approached the Supreme Court.

Key legal provisions

Motor Vehicles Act, 1988 (Section 2(28), Section 39)

Gujarat Motor Vehicles Tax Act, 1958 (Section 3)

Article 265 of the Constitution of India.

Issues raised

Whether machines used only inside factory or mining premises can be treated as motor vehicles and taxed like road vehicles?

Arguments of the case

UltraTech said the machines were meant only for off-road use and did not use public roads. The State argued that all mechanically driven vehicles should be taxed.

Judgement

The Supreme Court ruled in favour of UltraTech. It held that machines used only inside enclosed premises are not motor vehicles under the law. Since they do not use public roads, no registration or road tax can be demanded.

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