In Brief
A natural gas distributor charged "gas connection charges" to customers for supplying and installing SKID equipment (pipes, meters, regulators) needed to receive piped natural gas. The company retained ownership and control of this equipment. The Supreme Court held that these charges are taxable as a service under Section 65(105)(zzzzj) of the Finance Act, 1994. Although the equipment remains the supplier's property, the buyer 'uses' it to verify billing accuracy and ensure safe gas supply—purposes beneficial to both parties. The expression 'use' does not require physical operation or ownership; it means applying goods for their contractual purpose. Since control and possession remained with the supplier, the arrangement was a taxable service, not a deemed sale.
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