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2011 (3) TMI 1398 - HC - VAT and Sales TaxSales Tax / VAT on rental of electricity meters - petitioner collects rentals on the meters installed at the place of consumers where electricity is consumed - assessing authority determined the taxable turnover which included meter rentals received from the large number of consumers availing of service connections exceeding more than Rs. 50 lakhs - petitioner's contention that as per section 5E of the Act, the petitioner has not transferred any right to use the meters to the consumers was negatived by the assessing officer holding that under section 7A - held that:- the rent collected is not construed as part-payment for the cost of the meter. This only means that the Andhra Pradesh State Electricity Board continues to be the owner of the equipment and the consumer who pays the rent can never claim ownership. The ownership of the meter is retained by the Andhra Pradesh State Electricity Board and the right to use the meter is of course with the consumer, in the sense, it is the consumer who draws and avails of the electricity supplied by the Andhra Pradesh State Electricity Board, which is measured by use of the meter. the consumer and the Andhra Pradesh State Electricity Board have access to read the meter and the latter cannot disallow the consumer to make such use ; it can be said that the right to use is exclusively transferred to the consumer. As per condition 22.1.1 read with condition 12, it is the Board which installs the meters and collects rents. The rent collected is certainly taxable under section 5E of the Act. - Decided in favor of revenue.
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