CENTRAL COAL FIELDS LTD. versus STATE OF ORISSA AND ORS.

Citation: [1992] 2 S.C.R. 982 · Decided: 29-04-1992 · Supreme Court of India · Bench: M.M. PUNCHHI · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
CENTRAL COAL FIELDS LTD. 
v. 
STATE OF ORISSA AND ORS. 
APRIL 29, 1992 
B 
[MADAN MOHAN PUNCHHI AND K. RAMASWAMY, JJ.) 
Bihar and Orissa Motor Vehicles Taxation Act, 1930/0rissa Motor 
Vehicles Tax Act, 1975: 
c 
Sections 2(c) and 6/2(b)-'Motor Vehicle'-Amendment to the defini-
tion-R.etrospective application-Whether valid-Dumpers Rockers 
etc.-whether motor vehicles are liable to taxation. 
The appellant companies were engaged in mining activities and for 
D this purpose put to use a variety of machinery including Dumpers and 
Rockers, within their leasehold areas. The appellants were asked by the 
State Government to register the said machines as vehicles under the 
Motor Vehicles Act, 1939 and to pay tax under section 6 of the Bihar and 
Orissa Motor Vehicles Taxation Act, 1930, as also under the Madras 
E 
Vehicles (Taxation) Act, 1931. In section 2(c) of the Taxation Act and in 
the charging section 6, the definition of 'Motor Vehic~e' referred to the 
definition of 'Motor Vehicle' under the Motor Vehicles Act. 
In Boiani Ores Ltd. Etc. v. State of Orissa, (1975) 2 SCR 138, this 
Court held that the definition of 'Motor Vehicle' as existing prior to the 
F 
1956 amendment would be applicable as that was the one which stood 
incorporated in the Taxation Act. With this, the Dumpers and Rockers 
went out of the tax net though they were registrable under the Act, and the 
Tractairs were neither registrable under the Motor Vehicles Act nor 
taxable under the Taxation Act. 
G 
Anticipating a spate of refund applications as a result of the 
abovesaid decision, the Governor of the respondent State promulgated the 
Orrissa Motor Vehicles Taxation Laws (Amendment) Ordinance, 1975. 
The purpose of the Ordinance was not only to kill the demand for refund 
of tax but also to keep exigible tax under the Taxation Act, with retrospec-
H tive effect. 
982 
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COAL FIELDS v. STATE OF ORISSA 
983 
The claims of refund got wiped out by the Ordinance. Fresh demands A 
of tax were made from the appellants and claims for refund of tax involved 
in the earlier litigation were rejected. Appellants moved the High Court 
challenging the Ordinance and the consequent action. Meanwhile the 
Orissa Motor Vehicles Taxation Act, 1975 was passed replacing the Or-
dinance. the challenge to the 1975 Act and. the retrospectivity thereof was B 
turned down by the High Court. Aggrieved against the High Court's · 
judgment, the appellants have preferred the present appeals by special 
leave. 
On behalf of the appellants! it was.contended that the Dumpers and 
Rockers were vehicles not adapted for use upon roads and therefore C 
outside the scope of section 2(b) of the 1975 Act and hence not within the 
ambit of the charging section. 
Dismissing the appeals, this Court, 
HELD : 1. The High Court was right in concluding that Dumpers D 
and Rockers are vehicles adapted or suitable for use on roads and being 
motor v~hicles per se, as held in Boiani Ores case, were liable to taxation 
on the footing of their use or kept for use on public roads; the network of 
which, the State spreads, maintains it and keeps available for use of motor 
vehicles and hence entitled to a regulatory and compensatory tax. [991A, 8) 
2. On the basis of materials available on record, it is seen that 
Dumpers in some States are granted permission to run on public roads at 
a speed not exceeding 16 kms. per hour and on bridges and culverts at a 
speed not exceeding 8 kms. per hour. Thus they have a minimum weight 
E 
and safe ladeiuteight fixed on some principles. Pictures of various types F 
of Dumpers also indicate prominently one factor that these Dumpers run 
on tyres, in marked contrast to chain plates like cater pillers or military 
tanks. By the use of rubber tyres it is evident that they have been adapted 
for use on roads, which means they are suitable for being used on public 
roads. The mere fact that they are required at places to run at a particular G 
speed is not to detract from the position otherwise clear that they are 
adapted for use on roads. The very nature of these vehicles make it clear 
that they are not manufactured or adapted for use only in factories or 
enclosed premises. The mere fact that the Dumpers or Rockers are heavy 
and cannot move on the roads without damaging them is not to say that 
they are not suitable for use on roads. The word 'adapted' in the provision H 
984 
SUPREME COURT REPORTS 
(1992] 2 S.C.R. -
A 
was read as

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