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Issues:
Interpretation of Motor Vehicles Act and Motor Vehicles Taxation Act in the context of dumpers and shovels; Validity of taxation on vehicles used solely on owner's premises; Differentiation between dumpers and shovels for tax liability. Analysis: The Supreme Court judgment involved four appeals against a common judgment of the Judicial-Commissioner of Goa, Daman & Diu regarding taxation of dumpers and shovels used in mining operations in the Union Territory. The respondents claimed they initially paid tax under a mistaken belief that their vehicles were 'motor vehicles' and later stopped paying tax when they realized the error. The respondents challenged orders requiring tax payment, citing violation of fundamental rights guaranteed by the Constitution. The Judicial Commissioner held that vehicles used solely on the owner's premises were excluded from taxation, relying on previous case law. The Union of India and its officers appealed this decision. The Court differentiated between dumpers and shovels, defining dumpers as motor vehicles adapted for road use and liable for taxation. Shovels, on the other hand, were not clearly defined in previous cases. The Court noted that the Judicial Commissioner treated dumpers and shovels similarly, but the tax liability for shovels required further examination. The Court emphasized that tax is attracted to vehicles adapted for road use, regardless of actual use, unless they are of a special type only for enclosed premises. The Court held that dumpers, being used for transport of goods, were liable for compensatory tax for road availability. The Court allowed appeals related to dumpers, setting aside the Judicial Commissioner's decision and upholding the tax orders. However, for shovels, the Court found insufficient information to determine tax liability and remitted the matter back to the High Court for further consideration. The High Court was directed to permit parties to amend pleadings and provide evidence on the nature and function of shovels for a proper decision. The Court awarded costs to the appellants in all four appeals. In conclusion, the Supreme Court clarified the tax liability of dumpers as motor vehicles adapted for road use, affirming the tax orders. For shovels, further examination was required to determine tax liability, leading to the remittance of the matter back to the High Court for reconsideration based on additional evidence and pleadings.
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