LI Network
Published on: January 1, 2024 at 11:00 IST
The Jharkhand High Court reaffirmed that heavy earth-moving vehicles such as dumpers or rockers are encompassed within the definition of “motor vehicles” as per Section 2(28) of the Motor Vehicles Act. Consequently, the court emphasized the necessity for these vehicles to be registered under the Act.
Justices Sujit Narayan Prasad and Navneet Kumar of the Jharkhand High Court relied on the precedent set by the Supreme Court in the case of Bolani Ores Ltd. vs. State of Orissa.
The Court cited, “The fact as to whether such vehicle is coming under the fold of Section 2(28) or not has been considered by Hon‟ble Apex Court in the case of Bolani Ores Ltd. V. State of Orissa (supra)…”
The petitioner, Steel Authority of India Limited (SAIL), initiated a writ petition seeking the annulment of orders instructing the payment of road tax, registration charges, and penalties for its heavy earth-moving equipment utilized in coal mines.
SAIL contended that its equipment, exclusively operated within the leasehold area for mining activities, did not meet the criteria of “motor vehicles” under the Motor Vehicles Act. However, they received directives in 2014 mandating the registration of these vehicles.
The Single Judge dismissed the writ petition, asserting that the equipment fell under the definition of “motor vehicles” under Section 2(28) of the Motor Vehicles Act.
Drawing upon the Bolani Ores Ltd. vs State of Orissa case, the High Court stated that while the registration of the vehicle is necessary, the applicability of the Taxation Act is contingent upon whether the vehicle is operated within the owner’s premises or not.
Addressing the taxability of the vehicle, the Court noted, “the issue of whether the vehicle is taxable or not depends upon the test as to whether the vehicle is proposed to be used for transporting goods from one place to another.”
Concluding that it was not disputed that the vehicle in question could be used for transporting goods, the Court dismissed the appeal.
The case title is Steel Authority of India Ltd. vs The State of Jharkhand.
