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TMI Blog2014 (3) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... erence - The earlier assessment, out of which the instant proceedings have arisen, was partly unjustified - The Authority was only justified in raising a demand based on the rental collected by the appellant whilst rendering services, as also charges collected for the equipment supplied to consumers – It is just and appropriate to set aside the proceedings initiated by the Sales Tax Authorities and require the Assessing Authority to re-determine the sales tax in the matter - The entire proceedings initiated against the appellant are set aside, with liberty to the Assessing Officer to re-compute the sales tax and raise a demand thereon – Decided in favour of assessee. - Civil Appeal No (s). 2048 of 2008 with Civil Appeal No. 2049 of 2008, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under :- 78. But if there are no deliverable goods in existence as in this case, there is no transfer of user at all. Providing access or telephone connection does not put the subscriber in possession of the electromagnetic waves any more than a toll collector puts a road or bridge into the possession of the toll payer by lifting a toll gate. Of course the toll payer will use the road or bridge in one sense. But the distinction with a sale of goods is that the user would be of the thing or goods delivered. The delivery may not be simultaneous with the transfer of the right to use. But the goods must be in existence and deliverable when the right is sought to be transferred. 79. Therefore whether goods are incorporeal or corporeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onent was taken into consideration for raising the demand under reference. There is, therefore, no doubt in our mind that the earlier assessment, out of which the instant proceedings have arisen, was partly unjustified. The Sales Tax Authority was only justified in raising a demand based on the rental collected by the appellant whilst rendering services, as also charges collected for the equipment supplied to consumers. In the above view of the matter, rather than limiting our examination to the impugned order passed by the High Court, we would consider it just and appropriate to set aside the proceedings initiated by the Sales Tax Authorities and require the Assessing Authority to re-determine the sales tax in the matter, by referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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