Physical verification governs entry tax liability where excavator machinery may fall within the statutory definition of motor vehicle.

Entry tax liability for excavator machinery depends on whether the equipment falls within the statutory definition of a "motor vehicle" under section 2(28) of the Motor Vehicles Act, 1988. Where that character is disputed, the authority must first undertake proper physical verification of the machinery and then apply the legal test before fixing tax liability. The article also notes that objections raised by the assessee must be considered, and that an assessment made without such examination is not sustainable. The matter was therefore remitted for fresh decision after inspection, in line with the earlier Division Bench direction.

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Issues: Whether the excavator machinery was liable to entry tax as a "motor vehicle" under the relevant definition, and whether the assessment order could be sustained without proper consideration of the assessee's objections.

Analysis: The dispute turned on the character of the excavator machine and whether it answered the statutory definition of "motor vehicle" under section 2(28) of the Motor Vehicles Act, 1988. The assessee had raised this objection at the earliest stage and again thereafter, but the matter required factual verification of the machinery itself. In view of the earlier Division Bench ruling on similar excavator machinery mounted on chain links, the proper course was to verify physically whether the machine fell within the statutory definition before determining entry tax liability.

Conclusion: The assessment order was set aside and the matter was remitted to the respondent for physical examination of the machinery and fresh decision in accordance with law and the earlier Division Bench directions, in favour of the assessee.

Final Conclusion: The levy was not finally upheld or negatived on merits, and the controversy was sent back for fresh factual determination after inspection.

Ratio Decidendi: Where the taxability of machinery depends on whether it falls within the statutory definition of "motor vehicle", the authority must first undertake a proper physical verification and then decide liability in accordance with the applicable legal test.

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