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Kerala HC Upholds Motor Vehicle Status for Road-Adaptable Factory Machinery

Case Law Details

TaxGuru Citation
2025 taxguru.in 11728
Case Name
Natural Wood & Veneers Pvt. Ltd. Vs State of Kerala (Kerala High Court)
Date of Judgement/Order
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Natural Wood & Veneers Pvt. Ltd. Vs State of Kerala (Kerala High Court)

Road-Ready, Tax-Ready ; Factory-Only Use No Excuse: Forklifts & Crane Held Motor Vehicles—Registration Mandatory

The Petitioner, engaged in plywood & veneer manufacturing, used two forklifts (2005 & 2017) & one Pick-& -Carry crane (2002) exclusively inside its 6-acre factory premises for lifting & shifting timber logs. Claiming that these machines were merely “material-handling equipment” functioning only within an enclosed private factory, the Petitioner contended that they were not “motor vehicles” u/s 2(28) of the Motor Vehicles Act & , therefore, did not require registration or insurance. Reliance was placed on periodic safety examinations under the Factories Act & on precedents such as Bolani Ores, Travancore Tea Estates, & Tarachand Logistics.

Acting on a complaint, the Transport Department inspected the premises & issued Ext.P4 prohibiting use of the machines on grounds of absence of registration, fitness, & insurance. The State defended Ext.P4, contending that forklifts & cranes are roadworthy, structurally capable of being used on public roads, & therefore fall within the wide definition of “motor vehicle”. It was argued that the factory premises, accessible to workers, contractors, & visitors, constitute a “public place” under Section 2(34), & that Section 39 prohibits operating an unregistered vehicle “in any public place or in any other place”.

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 6,911

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