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Informist, Thursday, Jan. 8, 2026

 

--SC: Vehicles used by UltraTech Cement in factories not liable for road tax

 

NEW DELHI – The Supreme Court Thursday held that vehicles such as dumpers used by UltraTech Cement Ltd. inside its factories or closed premises were exempt from road tax. "...we are of the opinion that the vehicles used by the applicant are vehicles of special types, precisely construction equipment vehicles which are suitable and are meant for operation and use within the industrial area," said the bench of Justice Pankaj Mithal and Justice S.V.N. Bhatti. 

 

The Supreme Court said these vehicles stood excluded not only from the purview of Motor Vehicles Act, 1988, but also from the raod tax as Entry 57 of List II (State List) in the Seventh Schedule of the Indian Constitution authorises taxation of vehicles suitable for use on roads only. However, if any such kind of vehicles are found using roads, they would not be free from taxation, the apex court added.

 

The apex court set aside a 2007 order by the Gujarat High Court that had said that the vehicles used by UltraTech Cement were motor vehicles used on roads and liable to be taxed. The top court said the vehicles used by UltraTech Cement were used inside factory premises, which were defined as enclosed premises, and not meant for use on roads or public roads.

 

UltraTech Cement had challenged the action of Gujarat government directing them to get the equipment used within enclosed premises registered with the transport authority from retrospective effect. The petitioner is engaged in the business of manufacturing and marketing of clinker and cement products and has cement plants at different establishments. 

 

The petitioner uses dumpers of the category that do not require registration with the transport department if the same is deployed in the private premises, said UltraTech Cement. The petitioner challenged the tax department's move to recover road tax from the company on these vehicles. 

 

At 1128 IST, shares of UltraTech Cement were down nearly 1% at INR 12,079 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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