Ultratech Cement Ltd. v. State of Gujarat ; 2026 INSC 43- Gujarat Motor Vehicles Tax Act - Article 265 Constitution - Construction Equipment Vehicle
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Gujarat Motor Vehicles Tax Act, 1958 ;Motor Vehicles Act, 1988 - Section 2(28) - Though the term motor vehicle is wide enough but it expressly excludes some of the motor vehicles which are of special type and have been adapted for use only in factory or in any other enclosed premises from its ambit - When the special type of vehicles meant to be used as construction equipment vehicle within the enclosed premises and as such ex-facie stands excluded from the definition of the motor vehicle as contained in Section 2 (28) – However, if any such kind of vehicles are found using roads, they would not be free from the rigors of Section 2 (28) of the Act and Section 3 of the Gujarat Tax Act and may also be subject to proceedings for seizure and penalty in accordance with the law. (Para 37-44)
Constitution of India - Article 265 & Seventh Schedule - Entry 57 of List II - State is competent to levy and collect tax on vehicles i.e., motor vehicles if they are suitable for use on roads. (Para 28) State tax Act cannot tax vehicles which are not suitable for being used on roads. (Para 31)
Summary
The Supreme Court held that heavy construction equipment used exclusively within factory or enclosed premises—such as dumpers, loaders, excavators, dozers, drills, rock breakers, and surface miners—are excluded from the definition of “motor vehicle” under Section 2(28) of the Motor Vehicles Act and cannot be taxed under the Gujarat Motor Vehicles Tax Act. Relying on Article 265 and Entry 57 (List II) of the Constitution, Rule 2(cab) of the Central Motor Vehicles Rules, and precedents like Bolani Ores, the Court emphasized that taxation applies only to vehicles suitable for use on public roads, and Schedule I of the Gujarat Act does not prescribe tax rates for construction equipment vehicles. Consequently, the High Court’s orders were set aside, and while such vehicles are not taxable when used off-road, they may be liable if found using public roads.
Case Info
Case Details
- Case name: Ultratech Cement Ltd. v. State of Gujarat & Ors.
- Neutral citation: 2026 INSC 43
- Coram: Pankaj Mithal, J.; Prasanna B. Varale, J.
- Judgment date: January 08, 2026
Statutes and Laws Referred
- Constitution of India: Article 265; Seventh Schedule, List II, Entry 57.
- Motor Vehicles Act, 1988: Section 2(28); Section 39; Section 66.
- Central Motor Vehicles Rules, 1989: Rule 2(cab) (definition of “construction equipment vehicle”).
- Gujarat Motor Vehicles Tax Act, 1958: Section 2(10); Section 3(1); First Schedule (Item VI(f)(ii)).
- Motor Vehicles Act, 1939 (historical): Section 2(18) (for Bolani Ores context).
- MoRTH Circular: 13.07.2020 (on off-road equipment and registration).
Case Laws and Citations
- Bolani Ores Ltd. v. State of Orissa, (1974) 2 SCC 777.
- Tarachand Logistic Solutions Ltd. v. State of Andhra Pradesh & Ors., 2025 SCC OnLine SC 1851.
- Natwar Parikh & Co. Ltd. v. State of Karnataka & Ors., (2005) 7 SCC 364.
- Western Coalfields Ltd. v. State of Maharashtra & Anr., (2016) 11 SCC 613.
- Travancore Tea Estates Co. Ltd. v. State of Kerala & Ors., (1980) 3 SCC 619.
- Union of India & Ors. v. Chowgule & Co. Pvt. Ltd., 1992 Supp (3) SCC 141.
- M/s Central Coal Fields Ltd. v. State of Orissa & Ors., 1992 Supp (3) SCC 133.
- Chief General Manager, Jagannath Area & Ors. v. State of Orissa & Anr., (1996) 10 SCC 676.
- Bose Abraham v. State of Kerala & Anr., (2001) 3 SCC 157.
- State of Gujarat & Ors. v. Akhil Gujarat Pravasi V.S. Mahamandal & Ors., (2004) 5 SCC 155.
- Chairman, Rajasthan State Road Transport Corporation & Ors. v. Santosh & Ors., (2013) 7 SCC 94.
