TaxTMI 
TaxTMI 
1997 (2) TMI 229
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....ise of their revisional powers under Section 36(2) of the Central Excises and Salt Act, 1944 (for short `the Act') decided against the appellant holding that such tyres are also "tyres for motor vehicles" as envisaged in Item No. 16 of the Central Tariff (1st Schedule to the Act). 2. Appellant company has been manufacturing tyres and tubes of varying sizes which are excisable under Item No. 16 of the Central Excise Tariff. The said item, during the relevant period, contains the following descriptions : Item No. 16 - TYRES Item No. Tariff Description Rate of Duty 16. Tyres "Tyre" means a pneumatic tyre in the manufacture of which rubber is used and includes the inner tube, the tyre flap and th....
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....om the liability to pay the higher duty at 60% ad valorem. Learned Counsel for the appellant contended that "motor vehicles" are those vehicles which are made to run on the roads and not those which are made for other uses. On the other hand, learned Counsel for the Revenue argued that since dumpers etc. are also used to move on the roads, they too must be regarded as "motor vehicles" for the purpose of exigibility to excise duty. 5. The subject "motor vehicle" is not defined in the Act or in the Rules prescribed thereunder, nor even in Item No. 16. However, it is defined in Item No. 34 of the Central Tariff wherein motor vehicles are also subjected to excise duty at different layers. We may point out that both sides agreed that the....
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....he basic motor vehicle different from a motor vehicle. 7. A Bench of two judges of this Court has considered the identical question in Dunlop Indian Ltd. v. Union of India [1994 Suppl. (2) SCC 335]. Learned Judges approved the interpretation made by Government of India on the words "motor vehicles" in Item No. 16 mainly on two premises discerned from the description given in Item No. 34 of the Tariff. First is that "agricultural tractors" are also included in Item No. 34 and second is that the Explanation in Item No. 34 throws much light upon the precise meaning to be attached to "motor vehicles". Regarding the first premise learned Judges have observed thus : "If it is held that agricultural tractors also are `adapted for use up....
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....ad may only be anciliary or incidental to the main use of it. Emphasis in the definition must be on the words "use upon road" as those words would denote the principal or dominant use and not where it may move incidentally. 11. Sri Joseph Vellapally, learned Senior Counsel cited before us Maddox v. Storer [1962 (1) All England Reports 831] to support the contention that the word "adapted" can be used disjunctively as an alternative to "constructed" in which case it can only have one meaning, viz. if the thing was not originally constructed for the particular use then it has been altered and made fit for that purpose. Lord Parker C.J. who delivered the judgment in the said case made a clear observation that "when, however, one finds ....