Supreme Court – No MV Tax on Construction Equipment Vehicles

Section 2(28) of the MV Act – Heavy Earth Moving Machinery or special services vehicles or any construction equipment vehicles such as Dumpers, Loaders, Excavators, Surface Miners, Dozers, Drills, Rock Breakers etc. are “motor vehicles” within the ambit of Section 2 (28) of the Motor Vehicles Act, 19881 and are liable to be taxed under the Gujarat Motor Vehicles Tax Act, 1958.

They are “construction e quipment vehicles”.

Entry 57 of List II of the Seventh Schedule of the Constitution of India permits taxation only of vehicles “suitable for use on roads”, therefore, vehicles not used in public places or public roads or not suitable for use on roads are outside the purview of the definition of “motor vehicles” and are not chargeable to road tax.

Therefore, it can again be concluded that the vehicles used by the appellants are special type of vehicles which stand excluded from the definition of motor vehicles and, at the same time, being construction equipment vehicles, are not chargeable to tax. The Gujarat Tax Act itself does not provide for any rate of tax for collection of any tax from such vehicles.

Judgment dated 8.1.2026 of the Supreme Court of India in Civil Appeal Nos.3352-3353 of 2017 of Ultratech Cement Ltd   Vs.   State of Gujarat and others with connected civil appeals.

Construction, Mining and Cement Companies using heavy machinery of specialized construction machinery within premises are exempt from motor vehicles tax

Merely because the construction equipment vehicles are capable of being driven on roads does not make them “motor vehicles” if their primary adaptation is for use in enclosed premises.

Supreme Court – Dumpers, Loaders, Excavators Not “Motor vehicles” under Motor Vehicles Act – MV Tax Cannot Be Levied on Factory-Use Heavy Machinery