PETITIONER: DUNLOP INDIA LIMITED Vs. RESPONDENT: UNION OF INDIA DATE OF JUDGMENT15/04/1993 BENCH: AGRAWAL, S.C. (J) BENCH: AGRAWAL, S.C. (J) JEEVAN REDDY, B.P. (J) CITATION: 1994 SCC (4) 686 ACT: HEADNOTE: JUDGMENT:
ORDER
1. This appeal is preferred against the judgment and order
of the Government of India in a revision petition filed
under Section 36 of the Central Excises and Salt Act, as it
stood at the relevant time. The dispute pertains to
classification of, what are known as ‘off-the-road tyres’.
‘Off-the-road tyres’, according to the appellant, means
those tyres which are used for equipment not used on the
roads but for other special duties. The vehicles for which
these tyres are used are referred to as dumpers, coal-
haulers, bulldozers, earth-moving equipment, draglines,
excavators etc. The duty on tyres was provided by Tariff
Item 16 of the First Schedule to the Act, as it then stood.
Tariff Item 16 read as follows:
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“TYRES –
‘Tyres’ means a pneumatic tyre in the manufacture of which
rubber is used, and includes the inner tube and the outer
cover of such a tyre.
(1) Tyres for motor vehicles.
(2) For cycles (other than motor cycles)
(a) tyres
(b) tubes
(3) All other tyres.”
2. Pneumatic tyre means a tyre in the manufacture of which
rubber is used. It also means a tyre in which air is
compressed. It includes the inner tube as well as the cover
of such a tyre. Tariff Item 16 had three sub-items.
According to the appellant, the tyres for ‘off-the-road
vehicles’ fall under sub-item (3), whereas according to the
Revenue it falls under sub-item (1). The question,
therefore, arises whether ‘off-the-road vehicles’ can be
called ‘motor vehicles’. If they can be called motor
vehicles, tyres meant for them would fall under sub-item
(1); if not, the tyres meant for them would fall under sub-
item (3). There is no definition of ‘motor vehicles’ in the
Act or the Rules. However, Tariff Item 34 deals with levy
of excise duty on motor vehicles. The Government of India
has in its order relied upon the definition of motor
vehicles, contained in Tariff Item 34, for ascertaining the
meaning of the expression ‘motor vehicles’ in Tariff Item
16. Tariff Item 34 reads as follows:
“34 MOTOR VEHICLES –
‘Motor Vehicles’ means all mechanically
propelled vehicles adapted for use upon roads,
and includes a chassis and a trailer; but does
not include a vehicle running upon fixed rails
(1) Auto-cycles, motor cycles, scooters,
autorickshaws and any other three-wheeled
motor vehicles.
(2) Motor vehicles of not more than 16 H.P.
by Royal Automobile Club (R.A.C.) rating.
(3) Motor cars of more than 16 H.P. by Royal
Automobile Club (R.A.C.) rating, constructed
or adapted to carry not more than nine
persons. (3-a) Tractors, including
agricultural tractors.
(4) Motor Vehicles, not otherwise specified.
Explanation.- For the purpose of this item,
where a motor vehicle is mounted, fitted or
fixed with any weight-lifting, earth-moving
and similar specialised material-handling
equipment, then such equipment other than the
chassis shall not be taken into account.”
3. Tariff Item 34 defines the expression ‘Motor Vehicles’.
The opening words, no doubt, say that motor vehicles means
all mechanically propelled vehicles adapted for use upon
roads but the several clauses following enlarge the scope of
the definition to include even those vehicles which are not
adapted for use on roads. Clause (3-a) refers to tractors
including agricultural tractors. It is evident that
tractors and in particular agricultural tractors are not
meant for being used on roads. It is doubtful whether it
can be said that they are “adapted for use upon roads”,
though it is true they can be operated on roads as well. If
it is held that agricultural tractors also are “adapted for
use upon roads” notwithstanding the fact that they are
principally meant for being operated and
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used on agricultural lands, it can equally be said that
dumpers, coal-haulers, earth-movers etc. are also “adapted
for use upon roads”, though principally they are meant to be
operated and used on construction sites. Clause (4) in
Tariff Item 34 is in the nature of a residuary clause. It
says all motor vehicles not otherwise specified fall within
Item 34. Even the Explanation appended to Tariff Item 34
throws light upon the meaning and content of expression
‘motor vehicle’. It says that where a motor vehicle is
mounted, fitted or fixed with the weight-lifting, earth-
moving and similar other specialised material-handling
equipment, then, for the purpose of determining the value of
such motor vehicle, the value of such mounted equipment
shall not be taken into account. The Explanation indicates
that even a motor vehicle upon which is mounted the earth-
moving equipment etc. continues to be a motor vehicle. In
the absence of any definition of motor vehicle in Item 16,
we see no error in the Government of India relying upon the
definition of ‘motor vehicle’ contained in Item 34.
4. Even otherwise we are not satisfied that ‘off-the-road
vehicles’ are not ,motor vehicles’. After all, ‘motor
vehicles’ means a vehicle in which motor is fitted or a
vehicle which runs on motor. There is no reason, why
dumpers etc. are not motor vehicles. In this connection, it
would be relevant to notice the fact recorded in the letter
of the Superintendent, Central Excise dated January 8, 1974
to the effect that in spite of repeated requests, the
appellant not only failed to specify the types of tyres and
tubes which they manufactured for the purpose of dumpers,
coal-haulers, bulldozers etc. but filed a revision
classification list without any specification as to their
use. Basing upon this failure, the counsel for Revenue says
that this was for the reason that many of these tyres are
common to ordinary motor vehicles as well as off-the-road
vehicles. We are, therefore, of the opinion that the tyres
in question do not fall under clause (3) of Tariff Item 16.
Clause (3) of Tariff Item 16 evidently takes in tyres meant
for vehicles other than motor vehicles e.g. push-carts,
animal-drawn vehicles etc.
5. For the above reason, we see no error of law in the
classification done by the Government of India. The appeal
is accordingly dismissed. No costs.
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