UNION OF INDIA AND ORS. ETC. ETC. versus CHOWGULE AND CO. PVT. LTD. ETC. ETC.

Citation: [1992] 2 S.C.R. 992 · Decided: 29-04-1992 · Supreme Court of India · Bench: M.M. PUNCHHI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
B 
UNION OF INDIA AND ORS. ETC. ETC. 
v. 
CHOWGULE AND CO. PVf. LTD. ETC. ETC. 
APRIL 29,1992 
(MADAN MOHAN PUNCHHI AND B.P. JEEV AN REDDY, JJ.) 
Motor Vehicles Taxation Act, 1965 : Section 4-Toxable event 
under-What is-'Dumpers and Shovels'---Whether taxable. 
C 
Motor Vehicles Act, 1939 : Section 2( 18). (As amended by Act 100 of 
1956)-'Motor Vehicle'-What is-'Dumpers and shovels'-whether Motor 
Vehicle. 
The respondents, carrying on mining operations, were using 
dumpers and shovels which were registered as 'Motor Vehicles' under the 
D Motor Vehicles Act, 1939. They were paying tax thereon under. the Motor 
Vehicles Taxation Act, 1965. Subsequendy, they stopped paying tax on the 
ground that they were paying tax thereon under a mistaken belief that they 
were motor vehicles. The orders and not,ices requiring the respondents to 
pay the taxes were challenged by them. The Judicial Commissioner, Goa, 
E 
without drawing any distinction between dumpers and shovels, held that 
when dumpers and shovels were being used solely on the premises of the 
owner, they have to be excluded from the purivew of the Taxation Act since 
public roads were not being used by tho5e vehicles. Against the order of 
the Judicial Commissioner, Unipn of India filed appeals.in this Court. 
F 
Allowing _the appeals and setting aside the orders of the Judicial 
Commissioner, this.Court, 
· 
HELD : 1. Dumpers are vehicles used for transport of goods and 
thus liable to pay a compensatory taX for the availability of roads for them 
to run upon. The mere fact that dumperS were used solely on the premises 
G of the owner, or that they were in closed premises, or permission of the 
Authorities was !Deeded to move them from one place to another, or that 
they are not intended to be used or are incapable of being used for general 
purposes, or that they have an unladen and laden capacity depending on 
their weight and size, is of no consequence. The impugned orders and 
H notices issued by the appellants-officers to the respondents are valid and 
992 
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U.0.1. v. CHOWGULE & Co. [PUNCHHI, J.] 
993 
~ enforceable in accordance with law. (997 E-F, HJ 
2. Under section 4 of the T~tion Act, tax is to be paid for "keeping 
for use a motor vehicles", be one the owner thereof or not. It is the keeping 
of the motor vehicle for use which attracts taxation. Keeping the motor 
vehicle for use in the context is for use on public roads of the State. 
A 
~ 
~~B 
3. So far as the case of shovels is concerned, there is no definite 
material on the pleadings of the parties to conclude that besides their weight 
and size, what is their overhang and what is the nature of its wheels, by 
means of which it would transport goods or passengers so as to attract 
liability to taxation. When the view of the Judicial Commissioner in treating C 
dumpers and shovels at par, has been upset insofar as dumpers are con-
cerned, it is prudent that his view about shovels also is upset and the matter 
is remitted back for reconsideration by the High Court. [998 A-DJ 
Boiani Ores Ltd. etc. v. State of Orissa, (1975] l SCR 138; distin1-
1 guished. 
D 
Mis Central Coal Fields Ltd. etc. etc. v. State of Orissa and Ors. etc. 
etc., AIR 1991SC1371; followed. 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 2980-83 E 
of 1981. 
From the Judgment and Order dated 3.4.1978 of the Judicial Com-
missioner of Goa Daman and Diu in . Special Civil Application (Writ 
Petition) Nos. 2/69, 12/69, 47no and 48 of 1970. 
K. Lahiri and Ms. A. Subhashini (NP) for tlte Appellants, 
D.N. Mishra (for Mis. J.B.D. & Co.) for the Respondents. 
The Judgment of the Comt was delivered by 
F 
PUNCHHI, J. These four appeals by special leave are against· the G 
common judgment and order dated 3.4.1978 of the Judicial-Commissioner 
of Goa, Daman & Diu in Special Civil Applications (Writ Petitions) Nos. 
2/69, 12/69, 47no and 48no. The Union of India and its officers are the 
common appellants herein. 
Shortly put, the four writ petitioners before the Judicial Commis- H 
994 
SuPREME COURT REPORTS 
(1992) 2 S.C.R. 
A sioner, the respondents herein, were carrying on mining operations lli 
certain areas in the Union Territory of Goa, Daman and Diu. Thereat they 
.bad been ushtg 'various types of ~ 
machinery including dumpers a"nd 
shovels. The Motor Vehicles Act, 1939 (hereinafter referred to as the 'Act') 
was ~ade applicable in the Union Territory w.e.f. 1~1.1965 and simul-
B taneously the Motor Vehicles Taxation A
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