STATE OF ORISSA Vs. EXECUTIVE ENGINEER, GRIDCO, BHANJANAGAR

JUDGEMENT

(1.) The short question that arises for determination in the present revision petition is whether the rent collected by the dealer i.e. GRIDCO for installation of electricity meters will amount to a sale as defined under Sec. 2(g) of the Orissa Sales Tax Act, 1947 (OST Act).

(2.) Learned Additional Standing Counsel for the Department submitted that the definition of 'Sale' as contained in Sec. 2(g)(iv) of the OST Act is wide and it includes "transfer of the right to use any goods for any purpose for cash, deferred payment or other valuable consideration." According to him, the right to use the electricity meter has been transferred by GRIDCO to its customer for which it collects rent and, therefore, the rent so collected must be treated as the 'sale price'.

(3.) Reliance is placed on the decision of the Supreme Court of India in Bharat Sanchar Nigam Ltd. v. Union of India (2006) 3 SCC 1. The relevant portion of the said decision on which reliance is placed by the Petitioner reads as under: