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TMI Blog2008 (8) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... ransferred to the consumer. We, therefore, hold that the hiring of the meter does not amount to a sale. Appeal dismissed.The substantial question of law is answered against the Revenue and in favour of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... (j)(iv) of the Act. "2. Definitions.-- In this Act, unless there is anything repugnant in the subject or context,-- . . . (j) 'sale' means any transfer of property in goods for cash or for deferred payment or for any other valuable consideration other than a mortgage, hypothecation, charge or pledge, and includes,-- (i) to (iii). . . (iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;" We have heard Shri Ram Murti Bisht, learned Deputy Advocate-General for the Revenue and Shri Bhupender Gupta, learned senior counsel for the assessee. On behalf of the Revenue, it has been contended that by fiction of law &qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensee to ensure that the meter is kept in correct order. Subsection (4) provides that the licensee or any person authorised by him shall have the right, within reasonable hours, to access the meter and to inspect and test the same. The licensee can remove the meter. The consumer has no right to connect the meter with any electricity supply line except the one fixed by the licensee. It is common knowledge that the consumer has no right to even break the seals of the meter. The seals are affixed by the licensee. All that can be said in favour of the Revenue is that the meter is fixed at the site provided by the consumer and it is used to measure the supply of electricity made to the consumer. This, in our opinion, does not amount to transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners are charging is the rent for connecting instrument placed in the premises of the subscriber with the telephone exchange by way of telegraphic lines. Till the instrument is connected with the telegraph lines to the telephone exchange, the instrument placed in the premises of the subscriber is useless. Through the telegraph lines, the apparatus receives the telegraphic or other communication by means of electricity. So the petitioners are charging the rent for telegraphic lines including the instrument. Therefore, mere charge of the rent or fee as per measured rate system or message rate system cannot be equated with sale of goods or deemed sale of goods within the meaning of the 1973 Act. As a logical corollary to the aforementioned co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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