2004 (4) TMI 602 - SC - Indian Laws

Whether road rollers were not motor vehicles under the Motor Vehicles Act, 1988 and hence no tax could be levied on road rollers?

Summary

Issues:
1. Validity of G.O.Ms No. 75 dated 27th April, 1993 increasing road tax on vehicles.
2. Whether road rollers are considered motor vehicles under the Motor Vehicles Act, 1988.

Analysis:

Issue 1: Validity of G.O.Ms No. 75
The Andhra Pradesh High Court upheld the validity of G.O.Ms No. 75, which increased road tax on vehicles, based on Entry-57 of List-II of Schedule-VII of the Constitution of India. The High Court relied on the judgment in Bolani Ores Ltd. v. State of Orissa, emphasizing that vehicles must be adapted for use on roads to be taxed. The Motor Vehicles Act, 1988 defines a "Motor Vehicle" as any mechanically propelled vehicle adapted for road use. The High Court concluded that road rollers, not meant for transporting people or goods, could not be taxed despite the upheld G.O.

Issue 2: Classification of Road Rollers as Motor Vehicles
The Supreme Court analyzed the definitions under the Motor Vehicles Act, 1988, stating that a road roller falls within the definition of a "Light Motor Vehicle" and is considered a motor vehicle. The Court emphasized that a vehicle adapted for road use, even if not for carrying passengers or goods, qualifies as a motor vehicle. The Court dismissed the High Court's reasoning that a vehicle must carry people or goods to be classified as a motor vehicle. The Court also distinguished the present case from Bolani Ores Ltd., clarifying that road rollers, built exclusively for road use, are indeed motor vehicles.

Precedents and Decisions:
The Supreme Court cited the case of Ashok Gangadhar Maratha v. Oriental Insurance Co. Ltd., affirming that even a light motor vehicle is considered a motor vehicle under the Motor Vehicles Act. Additionally, the Court referenced the decision in Bose Abraham v. State of Kerala and Anr. to support the classification of road rollers as motor vehicles. Consequently, the Supreme Court set aside the High Court's judgment, dismissing the writ petitions challenging the taxation of road rollers. The Appeals were allowed, with no order as to costs.