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2006 (11) TMI 559 - HC - VAT and Sales TaxLevy of Entry Tax - Volvo Hydraulic Excavator - Imported the above referred two excavators - Sec 3 of the Tamil Nadu Tax on Entry of Motor Vehicles Act, 1990 - whether an excavator not running on inflated tyres, but on iron chain plates such as a caterpillar vehicle or a military tank would be a motor vehicle coming within the meaning of section 2(28) of the Motor Vehicles Act, 1988 r/w section 2(i) of the Tamil Nadu Tax on Entry of Motor Vehicles Act, 1990? - HELD THAT:- The excavator referred to in Bose Abraham's case [2001 (2) TMI 890 - SUPREME COURT] was a motor vehicle fitted with inflated tyres and not chain plates like caterpillars or military tanks. The excavator in question in the present case is mounted on iron plates made into chain such as caterpillar vehicles or military tanks. Such an excavator is used for excavating the earth and loading in lorries and it cannot be used upon public roads, since the roads would get damaged by the chains. The excavator moves around only in work sites and it is not suitable or adapted for use in public roads. This position is also confirmed by the physical verification carried out by the respondent, as seen from his report extracted above. The Kerala High Court in the case of Intelligence Officer, Squad No. IV, Kozhikode v. Ray Constructions Ltd.[2006 (2) TMI 602 - KERALA HIGH COURT] while considering a similar issue has held that the excavators in question having regard to its distinguishing features from the other excavators has to be held as not "motor vehicle" falling under the definition of the term defined u/s 2(28) of the Motor Vehicles Act, 1988 and therefore, not liable for entry tax. It is relevant to note that the Volvo excavators purchased by the petitioner which is the subject-matter of levy of entry tax are exactly similar to the excavators which were the subject-matter in the above referred reported decision of the Kerala High Court. Thus, the impugned show cause notice cannot be sustained and it is hereby set aside. The writ appeal is disposed of accordingly.
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