TATA IRON & STEEL COMPANY LTD. versus DISTRICT TRANSPORT OFFICER & ORS.

Citation: [2015] 10 S.C.R. 325 · Decided: 08-09-2015 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2015] 10 S.C.R. 325 
TATA IRON & STEEL COMPANY LTD. 
v. 
DISTRICT TRANSPORT OFFICER & ORS. 
(Civil Appeal No.3162of2006) 
SEPTEMBER 08, 2015 
[A.K. SIKRI AND R. F. NARIMAN, JJ.] 
Bihar and Orissa Motor Vehicles Taxation Act, 1930: 
A 
B 
s. 6(1 A) - Public Service Motor Vehicle - Imposition of 
additional tax - Motor vehicles used by appellant for which C 
respondent demanded additional moto.r vehicles tax -
Vehicles are bus, truck, tipper, water tanker, diesel tanker, 
explosive van, trailer, canteen van and school bus - School 
bus is used for carrying the children wards of the employees 0 
of the appellant from and to educational institutions purely 
as welfare measure - Tipping trucks are used for handling of 
coal within the mining area for production purposes -
Explosive vans are used for transfer of explosives - Likewise 
other vehicles are also used captively for business purpose E 
-
Thus these vehicles are used by appellant for its own 
purpose and would not be treated as vehicle for public or 
third party- Therefore, in such situation, appellant is not liable 
to pay additional tax in terms of s.6(1A) of the Act. 
Allowing the appeal, the Court 
F 
HELD: 1. The High Court has held that the 
expression 'adapted' in Section 2(j) has to be given its 
full meaning and when the vehicle was capable of being 
used for carrying of passengers and goods, it would be G 
treated as "Public Service Motor Vehicle." This approach 
is clearly faulty. There was r'lo dispute about the first 
requirement. The appellant had rested its case on the 
325 
H 
326 
. SUPREME COURT REPORTS 
[2015) 1 O S.C.R. 
A submission that the second requirement namely 'hire' 
or 'reward' had not been fulfilled. The expression 'hire' 
or 'reward' would mean that the vehicle must be run for 
the benefit of another. Obviously, the appellant is the 
owner, if the vehicle is given on 'hire' to a third person 
B and charges are received therefrom, it would amount to 
using the vehicle for 'hire'. Likewise, when the owner of 
the vehicle uses the vehicle himself but for the benefit of 
another person i.e. third person and receives some 
C charges for the said use, that may fulfill the requirement 
of 'reward'. Insofar as the present c~se is concerned, 
the vehicles ar~ not used for the third party at all. Most 
of the vehicles are used for business purposes. Some 
vehicles are used for carrying the children of the 
0 
employees from their residence to schools and back. 
That would not be treated as using the vehicle for public 
or third party. [Paras 5, 7, 8 and 9) [330-F-G; 331-C-D, E] 
E 
F 
G 
H 
Mis. Tata Engineering Locomotive Co. Ltd. v. The 
Sales Tax Officer Poona and Anr. 1979 (2) SCR 
357: (1979) 1 SCC 208; Hindustan Aeronautics 
Ltd. v. Registering Authority and Ors. 1999 (2) 
Suppl. SCR 296: (1999) 8 SCC 169 - relied on. 
Mis. Central Coalfields Ltd. v. State of Orissa AIR 
1992 SC 1371 : 1992 (2) SCR 982; State of 
Mysore v. Syed Ibrahim (1967) 2 SCR 361 -
distinguished. 
Case Law Reference 
1979 (2) SCR 357 
relied on. 
Para 9 
1999 (2) Suppl. SC_R 296 relied on. 
Para 9 
(1967) 2 SCR 361 
distinguished. Para 10 
1992 (2) SCR 982 
distinguished. Para 10 
TATA IRON & STEEL COMPANY LTD. v. DISTRICT 
327 
TRANSPORT OFFICER 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 
A 
3162 of2006. 
From the Judgment and Order dated 20.08.2004 of the 
High Court of Jharkhand at Ranchi in CWJC No. 3338of1992. 
D.A. Dave, Gopal Jain, R.N. Karanjawala, Nandini Gore, 
8 
Kartik Bhatnagar, Tahira Karanjawal, Neha Khandelwal, Manik 
Karanjawala for the Appellant. 
Ajit Kumar Sinha, Gopal Prasad, Jayesh Gaurav for the 
Respondent. 
C 
The Judgment of the Court was delivered by 
A. K. SIKRI, J. 1. In the instant appeal we are concerned 
with the issue as to whether the appellant is liable to pay 
additional motor vehicles tax in terms of sub-section(1A) of D 
Section 6 of the Bihar and Orissa Motor Vehicles Taxation Act, 
1930 (hereinafter referred to as 'the Act'). Section 6 of the Act 
relates to imposition of tax on the motor vehicles. Under sub-
section( 1) motor vehicles tax is leviable on every motor vehicle. 
E 
The rates of such tax are specified in the Second Schedule of 
the Act. However, under sub-section (1-A), certain kinds of 
motor vehicles are also liable to pay additional motor vehicles 
tax at the rate specified in the Third Schedule of the Act. Such 
vehicles have to fulfill the description of "Public Service Motor F 
Vehicle". Section 2 c

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