2014 (9) TMI 815

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..... circular would not be applicable. The fact of the matter is that requirements of statutory definition of supply of tangible goods are fulfilled in this case. In this case there is no dispute that the right of possession and effective control has not been transferred to the customer and are retained by the Board itself. - The meter installed in the premises where the water is supplied and so long as the water is being supplied, the meter would be there and the ownership of the meter and effective control would be with the Board only since officials of the Board take the meter reading at frequent intervals. Prima facie we find that hiring charges collected for water meters fulfilled the requirement of definition. The discussion above w .....

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..... ded by treating the service as Supply of Tangible Goods service. 2. Learned advocate submits that the appellant is performing statutory function and within the meaning of statute, appellant has to be treated as State. What is collected by them is a statutory levy and he submits the charges collected by them are prescribed by the statute and therefore it cannot be liable to tax at all. He submits that the Board s Circular No. 89/7/2006-S.T., dated 18-12-2006 supports the submission. Since it is a statutory levy that is being collected and since the appellant is a statutory body set up by State Government, appellant is not liable to tax. Learned AR has relied upon the decision of the Tribunal in the case of Research Design Standards Or .....

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..... of electricity meters also there was a Board circular saying that such charges collected are not liable to tax. However it was pointed out by the learned AR that Board circular was issued with regard to applicability of an exemption notification and the view taken was that exemption notification would be applicable. Therefore this submission would not help the appellant since in that case the Board took the view that exemption notification was applicable in respect of renting of electricity meter. It is nobody s case at present that there is an exemption notification applicable to water supply meters. In such a situation the Board circular would not be applicable. The fact of the matter is that requirements of statutory definition of suppl .....

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