Excavators & Dumpers Used Inside Factories Not Liable to Road Tax: Supreme Court

The Supreme Court held that excavators, dumpers, loaders, and other heavy earth-moving machinery used exclusively within a factory or enclosed premises are not “motor vehicles” under the Motor Vehicles Act.

Allowing Ultratech Cement’s appeal, the Court ruled that such off-road construction equipment is not liable to road tax, as taxation applies only to vehicles suitable for use on public roads.

However, the Court clarified that if such machinery is used on public roads, tax and penalties may apply.

[Ultratech Cement Ltd v. State of Gujarat & Ors.]