2008 (8) TMI 810

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....he appellantBoard under a duly executed agreement for such supply of meter amounts to 'sale' within the meaning of section 2(j)(iv) of the H.P. General Sales Tax Act, 1968 read with other relevant provisions thereof, is allowed to be referred to the honourable High Court as it is arising from the order of this Tribunal?" Brief facts of the case are that the assessee is the Himachal Pradesh State Electricity Board (hereinafter referred to as, "the Board"). The assessee is dealing in generation and distribution of electricity. The assessee supplies electricity to the consumers. To measure the electricity supplied to the consumers, meters are installed at the site/premises of the consumer. The Board retains a security for the supply....

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....as been contended that by fiction of law "sale" has been defined to include the transfer of the right to use any goods for cash, deferred payment or other valuable consideration. It is, therefore, contended that when the assessee rents out the meter to the consumer to be used by him this amounts to a sale and thereby the assessee becomes liable to pay tax on the same. On the other hand, Shri Bhupender Gupta, learned senior counsel on behalf of the assessee has urged that the electricity meter is fixed by the Board for its own purpose, i.e., to measure the electricity supply to the consumer. He further contends that the consumer has no right to, in any manner, interfere in the meter and therefore, there is no transfer of any right of the met....

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....our opinion, does not amount to transfer of any right in the meter to the consumer. The consumer has no right to change the meter. He has no right to remove the electricity supply wire. He has no right to remove or replace the supply line to the meter. He cannot break the seals of the meter. The meter is installed more for the benefit of the licensee than for the consumer. The licensee can ascertain and measure the electricity supply only through the use of a meter. It is only then that he can bill the consumer. There is no transfer of interest in the meter. What the Electricity Board is doing is that it is charging for the supply of electricity. The meter is hired out only for the purpose of measuring the electricity supply. This is done u....