HINDUSTAN AERONAUTICS vs REGISTERING AUTHORITY

The Supreme Court ruled that the vehicles operated by Hindustan Aeronautics Limited for transporting employees and their children do not qualify as 'contract carriage' under Section 2(7) of the Motor Vehicles Act, 1988, as there was no profit motive or contractual obligation involved. The Court emphasized that the mere collection of nominal charges does not transform the nature of the service provided. Consequently, the Court held that the appellant was not liable for the higher tax rate imposed by the Taxing Officer and allowed the appeal.