Ultratech Cement Ltd. vs The State of Gujarat & Ors.

Court

Supreme Court of India

Date

8 January 2026

Case No.

Civil Appeal No(s). 3352-3353 of 2017

Result

Allowed

Bench

Pankaj Mithal, Prasanna Bhalachandra Varale

Citation

[2026] 1 S.C.R. 467 : 2026 INSC 43

Acts & Sections

Motor Vehicles Act, 1988 Gujarat Motor Vehicles Tax Act, 1958 Constitution Central Motor Vehicle Rules, 1989

Issue for consideration

Issue arose whether Heavy Earth Moving Machinery or special services vehicles or any construction equipment vehicles such as Dumpers, Loaders, Excavators, Surface Miners, Dozers, Drills, Rock Breakers etc. are “motor vehicles” within the ambit of s.2(28) of the Motor Vehicles Act, 1988 and are liable to be taxed under the Gujarat Motor Vehicles Tax Act, 1958.

Headnote

Gujarat Motor Vehicles Tax Act, 1958 – s.3(1) – Motor Vehicles Act, 1988 – s.2(28) – Motor Vehicles – Road Tax – Heavy Earth Moving Machinery or special services vehicles or any construction equipment vehicles such as Dumpers, Loaders, Excavators, Surface Miners, Dozers, Drills, Rock Breakers etc., if “motor vehicles” within the ambit of s.2(28) of the 1988 Act and liable to be taxed under the Gujarat Motor Vehicles Tax Act – Appellant for manufacturing work at cement plants, using various Heavy Earth Moving Machinery/construction equipment or special services vehicle, if liable to pay road tax on those vehicles under the Gujarat Tax Act: Held: Vehicles used by the appellants not chargeable to tax – Vehicles used by the appellants are vehicles of special typesconstruction equipment vehicles which are suitable and are meant for use for operation and use within the industrial area/factory premises/ defined enclosed premises and are not meant for use on roads or public roads – They are off-road equipments and as such stand excluded not only from the purview of the “motor vehicle” as defined u/s.2(28) of the Act but also from tax as Entry 57 of List II of the Seventh Schedule of the Constitution only authorizes taxation of vehicles suitable for use on roads only – They are not even chargeable to road tax in view of Schedule I to s.3(1) of the Gujarat Tax Act which do not prescribe any tax for such kind of vehicles i.e., construction equipment vehicles – However, if any such kind of vehicles are found to be used on roads, they would not be free from the rigors of s.2(28) of the Act and s.3 of the Gujarat Tax Act and also be subject to proceedings for seizure and penalty – Impugned judgments and orders holding that the vehicles/equipment used by the appellants particularly Dumpers were “motor vehicles” under the Act and chargeable to tax, set aside – Constitution of India – Entry 57 of List II of the Seventh Schedule. [Paras 55, 56]

Judgment Pankaj Mithal, J. 1. Heard Shri P. Chidambaram, senior counsel appearing for the appellant-Ultratech Cement Ltd. in Civil Appeal Nos.3352-3353/2017 and Shri Nakul Dewan, senior counsel appearing for the appellant in Civil Appeal Nos.3357 and 3358/2017. Shri K. Parameshwar, senior counsel has been heard in opposition on behalf of respondent-State of Gujarat. 2. All the aforesaid four civil appeals are based on similar facts and raises a common question of law, namely; whether Heavy Earth Moving Machinery or special services vehicles or any construction equipment vehicles such as Dum

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