Can A Semitrailer Which Is Connected To A Motor Vehicle, Be Subjected To Tax? Gujarat High Court To Consider State's Appeal

The Gujarat High Court will hear next week, the State's appeal against a 2014 order of a single judge which held that tax cannot be levied on a semi trailer, as the same does not qualify as a "motor vehicle" under the Motor Vehicle's Act, 1988. A semi trailer defined under the Motor Vehicles Act means a vehicle not mechanically propelled (other than a trailer), which is intended to be connected to a motor vehicle and which is so constructed that a portion of it is superimposed on, and a part of whose weight is borne by, that motor vehicle. On Wednesday (March 5) a division bench of Chief Justice Sunita Agarwal and Justice Pranav Trivedi were considering two letters patent appeals moved by the State of Gujarat against an order passed by the single judge on July 28, 2014.It noted that the counsel appearing for the private respondent (original petitioner before the single judge) whose name was shown in the cause list was not present in court when the matter was called. The court also noted that the matter was posted for final hearing under the category of critically old matters. It thereafter proceeded to grant one chance to hear the counsel for the respondent and listed the matter on March 12. The court however made clear that no adjournments will be granted. The single bench in its 2014 judgment had observed that, "Under the provisions of the Tax Act, the tax could be levied and collected only on motor vehicle since a semitrailer is not a motor vehicle, levy of tax on semitrailer is not permissible".The single bench had noted that the definition of semi-trailer prior to the 1988 amendment said, "semitrailer means a trailer drawn by the motor vehicle and so constructed that a part of it is superimposed on and a part of its weight is borne by the, drawing vehicle”. It thereafter compared the two definitions and observed, "The marked difference between unamended definition of semitrailer and the amended definition of semitrailer in the Act is that, in unamended definition of semitrailer, the semitrailer was considered to be a trailer drawn by a motor vehicle. The definition of the trailer though did not include semitrailer still considered to be motor vehicle even though comprised in articulated vehicle and was subjected to tax independently as motor vehicle. However, as per the amended definition of semitrailer, it is now though a vehicle but not mechanically propelled (other than a trailer) and thus not a motor vehicle. As per the definition of motor vehicle or vehicle, only those mechanically propelled vehicles adapted for use upon roads including chasis without body attached and trailer are stated to be the motor vehicles. Therefore, though a semitrailer is a vehicle but since not mechanically propelled, is not included in the definition of the motor vehicle and thus, not a motor vehicle". Background:Before the single judge, the respondent-original petitioner argued that he is the owner of HMV Articulated Trailer, which was used for carrying goods. He entered into a contract with another person for the transportation of a Hydrogen Gas Cylinder from Ankleshwar to various destinations in Gujarat and for such purpose, the Hydrogen Gas Cylinder Bank fixed in a manifold structure owned by the latter. This was mounted on a trailer bearing Chasis No.KE008/1998 procured by the other individual from M/s.KhalsaEngineer Company on 02.06.2005 and was attached with the prime mover of the original petitioner. When it was taken from Ankleshwar to Dahej, the inspector of the motor vehicles at Mehsana checked the original petitioner's vehicle on 19.07.2005 and detained the vehicle under Section 207 of the Act.The original petitioner had said that he is entitled to use his prime mover for drawing any trailer or semitrailer not owned by him, and therefore, the authorities could not have seized or detained his vehicle.The RTO had contended before the single judge when the vehicle of the original petitioner was checked, the trailer got registered with the prime mover was not attached but, trailer not registered with the prime mover was found attached and therefore the petitioner was liable to pay the tax as also the penalty as the petitioner unauthorizedly used his vehicle without payment of tax.It was stated that that there are two vehicles in existence–one is the articulated vehicleI of the original petitioner, comprises of primemover No.GJ1AT9181 plus semitrailer No.DEW/7/2004 and the second is articulated vehicleI i.e. prime mover No.GJ1AT9181 plus semitrailer KE0081998. It is further stated that the tax on second goods vehicle was not paid. The authority had claimed that such a trailer is not exempted from the payment of tax. Case title: STATE OF GUJARAT & Another v/s HAFIXMOHAMMAD SHERMOHAMMAD SHAIKHCase No: LPA 1 of 2015

Can A Semitrailer Which Is Connected To A Motor Vehicle, Be Subjected To Tax? Gujarat High Court To Consider State's Appeal

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