RAJASHREE CEMENT Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The appellants being aggrieved by the order dated 24-05-2010 (Rajashree Cement, Gulbarga District v State of Karnataka and Others, 2010 5 KarLJ 592)) made in W.P. No. 16188 of 2007 connected with W.P. Nos. 16507 of 2007, W.P.Nos.8738 and 8739 of 2008 passed by the learned Single Judge, files these appeals.

(2.) Appellants are the companies registered under the provisions of Companies Act, 1956 and is engaged in manufacturing, sales and distribution of cement at Sedum Taluk, Gulbarga District. The Limestone is the essential raw material required for the manufacture of cement and for the purpose of obtaining the said Limestone, the appellants have entered into mining lease with the State Government by paying royalty. For the purpose of excavating the limestone, the appellants own Earth Moving Equipments, such as dumpers, shovels, forklift, pay loaders, cranes and excavators (hereinafter referred to as EMEs) for the mining purpose within the factory limits or in the mining area.

(3.) Being aggrieved by the said order, the appellants filed W.P. No.16188 of 2007 connected with W.P.Nos.16507 of 2007, 8738 and 8739 of 2008 before this Honble Court challenging the same on various grounds and also contending that in view of the law laid by the Honble Supreme Court in the case of Bolani Ores Limited v State of Orissa, 1975 AIR(SC) 17), and in a case in Pampavathi, the respondents have no power to collect the tax only on the ground that the said vehicles have been registered under the Motor Vehicles Act. The learned Single Judge relying upon the judgment in the case of Chief General Manager, Jagannath Area and Others v State of Orissa and Another, 1996 10 SCC 676) and in another case of State of Gujarat and Others v Akhil Gujarat Pravasi V.S. Mahamandal and Others, 2004 AIR(SC) 3894, held that non-use of the vehicle on the public roads, the petitioners liability to pay the tax does not ceases. There is no nexus between the actual use of the vehicle on the road and liability to pay the tax. Relying upon the judgment in Central Coal Fields Limited v State of Orissa and Others, 1992 AIR(SC) 1371), held that dumpers and rockers are liable to be taxed. However, liberty has been reserved to the petitioners to challenge the notification dated 7-12-2000 and also to seek for exemption or reduction of the tax in respect of EMEs.