2006 (2) TMI 602 - HC - VAT and Sales Tax

Entry tax as per the Kerala Tax on Entry of Goods into Local Areas Act 1994 - 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 within the meaning of section 2(28) of the Motor Vehicles Act 1988 read with section 2(1)(j) of the Kerala Tax - HELD THAT - Apex Court in Bose Abraham s case 2001 (2) TMI 890 - SUPREME COURT also has taken the view that excavators and road rollers are motor vehicles within the meaning of sub-section (28) of section 2 read with section 2(1)(j) of the Kerala Tax on Entry of Goods into Local Areas Act 1994. The excavator in question is mounted on iron plates made into chain such as caterpillar vehicle or a military tank. Such an excavator is used for excavating the earth and loading in lorries. The decisions in Central Coal Fields Ltd. v. State of Orissa 1992 (4) TMI 239 - SUPREME COURT would categorically show that the apex Court itself had made a distinction between vehicles fitted with chain plates like caterpillars and military tank and others. The excavator referred to in Bose Abraham s case was a motor vehicle fitted with inflated tyres and not chain plates like caterpillars or military tank. Thus we are in agreement with the learned single Judge that the excavators fitted with chain plates like caterpillars like military tanks are not motor vehicles within the meaning of sub-section (28) of section 2 of the Motor Vehicles Act read with section 2(1)(j) of the Kerala Tax on Entry of Goods into Local Areas Act 1994. Appeal therefore lacks merit and the same would stand dismissed.

Summary

Issues:
1. Whether an excavator running on iron chain plates is considered a motor vehicle under the relevant legislation and liable for entry tax.

Analysis:
1. The main issue in this case was determining whether an excavator running on iron chain plates, such as a caterpillar vehicle or a military tank, falls under the definition of a motor vehicle as per the Motor Vehicles Act and the Kerala Tax on Entry of Goods into Local Areas Act. The original petition sought to challenge an order that classified the excavator as a motor vehicle subject to entry tax. The single Judge ruled in favor of the petitioner, stating that the excavator in question did not meet the criteria of a motor vehicle under the law, leading to the State filing an appeal against this decision.

2. The State, represented by the Special Government Pleader, argued that the definition of a motor vehicle did not necessitate inflated tires and that even vehicles moving on chains, like military tanks, could be considered motor vehicles adapted for use on public roads. Reference was made to previous court decisions that upheld the classification of excavators and road rollers as motor vehicles subject to entry tax, emphasizing that the functionality for public road use was not a determining factor.

3. On the other hand, the counsel for the respondent distinguished previous cases by highlighting the specific features of the excavator in question, pointing out that it was not designed for road use due to its chain mounting. The argument focused on the excavator's limitations in road mobility and its primary function at work sites, making it unsuitable for public road usage as required for classification as a motor vehicle under the law.

4. The court examined the relevant provisions of the Motor Vehicles Act and the Kerala Tax on Entry of Goods into Local Areas Act, along with previous judicial interpretations. It was noted that excavators and road rollers had been previously classified as motor vehicles, but the distinction was made based on their adaptability for public road use. The court referenced a Supreme Court judgment that highlighted the difference between vehicles moving on chain plates and those adapted for road use with rubber tires, emphasizing the suitability for public road usage as a crucial factor in classification.

5. Ultimately, the court agreed with the single Judge's decision that excavators with chain plates like caterpillars or military tanks should not be considered motor vehicles under the relevant legislation. The appeal was dismissed on the grounds that the excavator in question was not adapted for public road use, aligning with the interpretation that suitability for road usage is a key factor in determining the classification of a motor vehicle.

6. In conclusion, the judgment clarified the classification of excavators running on iron chain plates and emphasized the importance of adaptability for public road use in determining whether a vehicle qualifies as a motor vehicle under the law, leading to the dismissal of the appeal.