Road Tax News: Coal India, SAIL, or other mining companies operate numerous heavy vehicles that never travel on public roads in their lifetimes. They simply run around the mines and factories. Now, such motor vehicles will no longer have to pay road tax, a provision approved by the Supreme Court.
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New Delhi: Companies like Coal India, Steel Authority of India Limited (SAIL), Tata Steel, L&T, ACC, and Ultratech have received relief following a Supreme Court ruling.
What is the ruling?
The Supreme Court has ruled that vehicles such as dumpers, excavators, and surface miners used by companies operating heavy industrial and construction machinery in factories, mines, and other enclosed spaces will not be considered motor vehicles. Therefore, these motor vehicles will not be subject to road tax.
High Court decision overturned
The Supreme Court bench headed by Justice Pankaj Mithal delivered this verdict on Thursday. The bench overturned a 2011 decision by the Gujarat High Court. The Supreme Court issued this ruling on an appeal by UltraTech Cement. The court stated that the vehicles used by the company at its factories, mines, and construction sites are “specially designed construction equipment vehicles. They are designed for operation and use within the industrial area.”
Will not ply on public roads
The bench stated that these vehicles operate only within UltraTech’s factory, which is a confined space. They are not designed for use on roads or public roads. Therefore, these vehicles are not only outside the scope of the Motor Vehicles Act but are also exempt from road tax. It is noteworthy that under the provisions of the Seventh Schedule of the Constitution, states have the right to tax only vehicles operating on roads. However, the Supreme Court also clarified that if such vehicles are found plying on public roads, they will not only be taxed but also face a fine.
Why the High Court was approached?
In 2011, the Gujarat High Court allowed the imposition of road tax on construction equipment. The Transport Authority, under the state government, had demanded a tax on heavy construction equipment and motor vehicles operating at factories or construction sites. Subsequently, several companies, including UltraTech, challenged this in the High Court.
Read More: New Expressway: Vehicles will run at full speed on the Delhi-Dehradun Expressway from February.
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