TMI Blog2012 (12) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... on paid by the appellant to the vehicle owners, considering it as a consideration for services of "Goods Transport Agency" Held that:- The agreement does not demonstrate that the operator has any special rights or responsibility about the goods as is the case of goods entrusted to a Goods Transport Agency. This obviates the need to issue consignment notes which normally is a document of title for the goods when it is in the custody of the transporter. There is one clause to the effect that the operator will obtain proper receipts from customers after the goods are delivered. Thus by itself cannot make the contract to be that of "Goods Transport Agency" as defined in section 65 (50) (b) of Finance Act, 1994. When consignment notes are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged, in manufacturing Read Mix Concrete ( RMC for short). They had hired Transits Mixers , that is, vehicles specially designed for carryings RMC from place of manufacture to place of delivery of the goods. The vehicles were provided by the owners to the appellant for their use as per terms of a contract. The appellant paid consideration to the vehicle owners which involved certain payments on monthly basis and certain payments based on the number of kilometres run. Revenue demanded tax on the consideration paid by the appellant to the vehicle owners, considering it as a consideration for services of Goods Transport Agency received by the appellants since in the case of such services tax is to be paid by recipient of service. The counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , consignees etc. and such record is equivalent to consignment note. 5. We have examined the terms of the contract. The contract is for hiring of vehicles. The vehicle are to be painted as directed by the appellant and showing appellants logo. The main responsibility of the supplier of vehicles is to ensure the availability of the vehicles in time and in proper condition. The agreement does not demonstrate that the operator has any special rights or responsibility about the goods as is the case of goods entrusted to a Goods Transport Agency. This obviates the need to issue consignment notes which normally is a document of title for the goods when it is in the custody of the transporter. There is one clause to the effect that the operator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges will be reimbursed on producing bills. 18. Unloading Time: In case of material is not unloaded within 4 hours of loading time, then Vehicle operator should inform the RMC Representative which in turn should instruct to driver or unload the material immediately, so that setting of the material is avoided. In case of setting of the material in bowl unit for the above reason, then cost of removing the material will be borne by the company. But, in case delay is on account of transit time due to fault of driver, then cost of removing the material from bowl will be borne by you. 19. The vehicle will run 24 hours a day as per instruction of Production In-charge. If vehicle goes on minor break down, the proportionate full amount w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be solely held responsible for all the consequences and decision of management shall be final and binding for any action and all accidents arising due to various causes. It is your responsibility to settle the accident matter with police, Insurance Company and third party etc. If any loss occurs due to negligence of drivers, it will be debited to your account and will be recovered from your running bill. 7. The above terms show that this is a case where the operator was responsible only for the vehicle and there is no custodial rights or responsibilities in matter of goods carried. Since the appellants are responsible for the goods transported, consignment note, which is a document of title to the goods, is not issued. Definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be understood that these two expressions refer to different types of persons. 'The mere fact that the operator is doing activity of transportation cannot make the operator a Goods Transport Agency . So the operators in this case cannot be considered as Goods Transport Agencies . We are not in agreement with the argument of revenue that the log-book maintained by the operators should be considered as equivalent to consignment note. The fact that part of the hire charges for the vehicles is being paid on the basis of number of kilometres run cannot alter the nature of the responsibility of the operators because such payment is consistent with a scheme of hiring the vehicle though it may be consistent with a contract for transportation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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