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2026 DIGILAW 21 (MAD)

Tvl. MRG Granites, Melur Taluk, Madurai v. State, Tax Officer Melur Assessment Circle, Madurai

2026-01-05

KRISHNAN RAMASAMY

body2026
ORDER : KRISHNAN RAMASAMY, J. These Writ Petitions have been filed challenging the impugned orders of the respondents dated 02.09.2025, 12.09.2025, 15.09.2025 and 16.09.2025 respectively. 2. The learned counsel appearing for the petitioners would submit that in the present case, the petitioners have purchased AMW Tipper (Dumper) and Hydraulic Mobile Crane [Escort Tipper (Crane)] from M/s.Escorts Construction Equipment Limited, Faridabad and M/s.Asia Motorworks Limited, Gujarat. While bringing those vehicles into the State of Tamil Nadu, the Authorities concerned have levied entry tax in terms of provisions of Section 3 of the Tamil Nadu Tax on Entry of Motor Vehicles to Local Areas Act , 1990 (hereinafter called as 'the Entry Tax Act') by considering the above vehicles as 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act. According to the learned counsel, AMW Tipper (Dumper) and Hydraulic Mobile Crane are not 'motor vehicles' as per the provisions of the Entry Tax Act as well as the Motor Vehicles Act , 1988. By referring Section 3 of the Entry Tax Act, he would submit that entry tax would be levied only for the 'motor vehicles'. In the event, if a vehicle is used only within the premises of the factory or in an enclosed premises, such vehicle would not be considered as motor vehicle. AMW Tipper (Dumper) and Hydraulic Mobile Crane are meant for use only in the factory premises and not on the road and hence, those vehicles are not 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act, so as to levy tax as per Section 3 of the Entry Tax Act. In support of his contentions, the learned counsel relied upon the Judgment of this Court in W.P.(MD)Nos.5691 and 5694 of 2021, dated 15.04.2021, and would submit that the above Judgment would squarely apply to the facts of the present case. He therefore, prayed for allowing these Writ Petitions. 3. The learned Additional Government Pleader appearing for the respondents, by filing counters would submit that, in the present case, the petitioners purchased AMW Tipper (Dumper) and Hydraulic Mobile Crane, which are 'motor vehicles' as defined under Section 2 (i) of the Entry Tax Act as well as Section 2 (28) of the Motor Vehicles Act , 1988, so as to enable the respondents to levy tax in terms of provisions of Section 3 of the Entry Tax Act. Thus, the respondents have levied the entry tax. He therefore prayed for dismissal of these Writ Petitions and also requested that the counters of the respondents shall form part and parcel of this order. 4. I have given due consideration to the submissions made on either sides. 5. Now, the issue to be decided is whether, the vehicles, AMW Tipper (Dumper) and Hydraulic Mobile Crane are 'motor vehicles' as defined under the Entry Tax Act as well as the Motor Vehicles Act , 1988 so as to enable the respondents to levy entry tax in terms of Section 3 of the Entry Tax Act. To deal with this aspect, it would be apposite to extract Section 2 (i) of the Entry Tax Act as well as Section 2 (28) as the hereunder:- " Section 2 (i) of the Entry Tax Act: "motor vehicle" means a motor vehicle as defined in clause (28) of Section 2 of the Motor Vehicles Act , 1988; ; Section 2 (28) of the Motor Vehicles Act : “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding1[twenty-five cubic centimetres]" 6. In terms of provisions of Section 3 of the Entry Tax Act, entry tax would be levied only on the 'motor vehicles' defined under the Motor Vehicles Act , 1988. A reading of the above extracted definitions, particularly, Section 2 (28) of the , 1988, would show that 'motor vehicle' or 'vehicle' excludes a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding1[twenty-five cubic centimetres]. 7. 7. The contention of the petitioners is that AMW Tipper (Dumper) and Hydraulic Mobile Crane, purchased by them were meant to be used only in the factory premises and not outside and hence, those vehicles would not fall under the category of 'motor vehicles' as defined under Section 2 (28) of the Motor Vehicles Act , 1988 and thus, those vehicles would squarely fall under the exempted category of vehicles. 8. Certainly, AMW Tipper (Dumper) and Hydraulic Mobile Crane are 'plant and machinery equipments which are designed, structured, manufactured for carrying the activities of lifting materials in mining, quarrying, road construction, etc., in enclosed premises'. Once a vehicle is used only in enclosed premises, then, such vehicle would not come under the category of 'motor vehicles' as defined under Section 2 (28) of the Motor Vehicles Act , 1988. In view of the same, AMW Tipper (Dumper) and Hydraulic Mobile Crane, which are meant for usage only in the enclosed factory premises are not 'motor vehicles' as defined under Section 2 (28) of the , 1988 and would come outside the purview of the , 1988. Hence, the question of levying tax under Section 3 of the Entry Tax Act, would not come into picture. This Court, in W.P. (MD)Nos.5691 and 5694 of 2021, dated 15.04.2021, in similar circumstances, has held as follows:- "5. The issue that arises is whether that vehicle comes within the description of 'Motor Vehicle' in terms of Section 2 (1) of the Act which in turn refers one to the definition of 'Vehicle' in Section 2 8(2) of the Motor Vehicles Act , 1988. The definition is extracted hereunder: 'Motor Vehicle or vehicle means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer, but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than 4 wheels fitted with engine capacity of not exceeding 26 cubic centimeters'. 6. Admittedly, in this case, the vehicle in question is 'Earth Moving Equipment'. 6. Admittedly, in this case, the vehicle in question is 'Earth Moving Equipment'. The purchase and use of WB Tipper (dumper) in the petitioner granite quarry is machinery within the meaning of Rule 2(ca) of the Central Motor Vehicles Rules, 1989. This question has been settled by the First Bench of this Court in RDS Project Limited Vs. Commercial Tax Officer, Chennai , reported in 2007(8) VST 574 (Mad), wherein the Bench holds in paragraph Nos. 8 to 10 as follows: 8. The short question that falls for our consideration is whether an excavator not running on inflated tyres, but on iron chain plates such as a caterpillar vehicle or a military tank would be a motor vehicle coming within the meaning of Section 2 (28) of the Motor Vehicles Act , 1988 read with Section 2 (i) of the Tamil Nadu Tax on Entry of , 1990 and is, therefore, liable to tax under Section 3 of the Tamil Nadu Tax on Entry of , 1990. 9. The term "vehicle" has been defined in Section 2 (i) of the Tamil Nadu Tax on Entry of Motor Vehicles Act , 1990 as follows: 'Motor vehicle' means a motor vehicle as defined in Clause (28) of Section 2 of the , 1988. 10. Thus, it could be seen that the State Legislature has adopted the definition of "motor vehicle" as defined under Sub-section (28) of Section 2 of the Motor Vehicles Act , 1988, which reads as follows: 'Motor vehicle' or 'vehicle' means any mechanically propelled vehicle adapted for use upon roads, whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer ; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity not exceeding (twenty five cubic centimetres). 7. In the light of the aforesaid decision, the impugned orders of the respondent in Roc:192/2021/B3(1) and Roc: 192/2021/B3(2) TIN 33614942003, respectively dated 05.03.2021, are quashed and the Writ Petitions are allowed. No costs. Consequently, connected miscellaneous petitions are closed." 9. 7. In the light of the aforesaid decision, the impugned orders of the respondent in Roc:192/2021/B3(1) and Roc: 192/2021/B3(2) TIN 33614942003, respectively dated 05.03.2021, are quashed and the Writ Petitions are allowed. No costs. Consequently, connected miscellaneous petitions are closed." 9. In view of the above Judgment and in light of the aforesaid discussion and findings, I have no hesitation to hold that the subject vehicles, namely, AMW Tipper (Dumper) and Hydraulic Mobile Crane [Escort Tipper (Crane)], which are meant for usage only in the enclosed factory premises will not come under the purview of Motor Vehicles Act , 1988 and thus, the petitioners are exempted from paying entry tax for the purpose of bringing the subject vehicles into the State of Tamil Nadu. By holding so, all the impugned orders of the respondents dated 02.09.2025, 12.09.2025, 15.09.2025 and 16.09.2025 are set aside. 10. In the result, the Writ Petitions are allowed as prayed for. No costs. Consequently, connected Miscellaneous Petitions are closed.