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TMI Blog2020 (4) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... ;) by M/s. K.M. Trans Logistics private Limited, Jaipur, Rajasthan (hereinafter also referred to as 'the Appellant') against the Advance Ruling No. RAJ/AAR/2019-20/ 19, dated 29.08.2019 = 2019 (10) TMI 668 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN. BRIEF FACTS OF THE CASE 3.1 The appellant M/s. K M Trans Logistics Private Limited, Jaipur, Rajasthan are registered under GST Law with GSTIN 08AACCK0420F1Z4 and engaged in providing transport services to various manufacturers of motor vehicles for carrying their vehicles from the factory to the various cities in India where the authorised dealers are located. The appellant is having registered office at Jaipur. The appellant stated that the goods will be transported using its own vehicles/ lorries under E-way Bill Rules but there Will be no generation of consignment note and therefore, is claiming that the services are out of the purview of GST and will categorise as non-taxable service. 3.2 The appellant filed an application dated 12.06.2019 before the Rajasthan Authority for Advance Ruling and sought Advance Ruling on the following questions:- (i) Does Transportation by own vehicles on the basis of Invoice(s) and E-way Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (c) Bill of lading issued by shipping lines 5.4 Nowhere in the E-Way Bill format is a requirement of mentioning the Consignment Note No./LR/GR issued by Goods Transport Agency or transporter. Thus there is no requirement of mandatory issuing consignment note or LR/GR by the transporter. 5.5 E-Way Bill can be generated without generating Consignment note/LR/GR. Presently the E-Way Bills are generated on the GST portal without mentioning of Consignment note /LR/GR. 5.6 The finding of the Advance Ruling that issuing Consignment note/ LR/GR goods cannot be transported or E-Way Bill cannot be issued is wrong as practically on GST portal the E-Way Bills are being generated without having consignment note / LR/GR. 5.7 Since there is no consignment note issued, thus, the services are out of the purview of GST and will categorize as non-taxable service/ non-GST supply. PERSONAL HEARING 6. A personal hearing in the matter was held on 04.11.2019. Sh. Alok Kumar Kothari, Advocate, authorized representative or the appellant, appeared for personal hearing on 04.11.2019. He reiterated the submissions already made in their appeal memorandum. He had nothing further to add. DISCUS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... described as "Goods Receipt Number or Railway Receipt Number or Forwarding Note number or Parcel way bill number issued by railways or Airway Bill Number or Bill of Lading Number, at Note 3 of the notes appended to the format. From Note 3, it is amply clear that transport document number refers to GRN issued by Railways/Air way bill no. issued by airways/Bill or lading issued by shipping lines. Nowhere in the E-Way Bill format is a requirement of mentioning the Consignment Note No. /LR/GR issued by Goods Transport Agency or transporter. E-Way Bill can be generated without generating Consignment note/ LR/GR; presently the E-Way Bills are generated on the GST portal without mentioning of Consignment note /LR/GR. The finding of the Advance Ruling that without issuing Consignment note/LR/GR goods cannot be transported Or E-Way Bill cannot be issued is wrong as practically on GST portal the E-Way Bills are being generated without having consignment note / LR/GR. Since there is no consignment note issued, thus, the services are out of the purview of GST and will categorize as non-taxable service/ non-GST supply.. 11. The appellant/applicant, vide its application dated 12.06.2019 filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the contracts / agreements between the appellant and service recipients is necessary. However, we find that since no copy of agreement/contract has been produced before us by the appellant or his authorized representative for examination, the case is being decided on the basis of whatever information has been provided and the nature of services i.e. Goods transport services, Rental services of transport vehicles, Supporting services in transport etc. will be decided based on the information submitted. 12. The appellant is claiming that since they are not issuing consignment note, the service to be provided by them will be non-GST Supply. What comes out from the submissions made is that the appellant will be providing services by way or transport of goods by road for the clients. The goods will be carried by them in vehicles/lorries from the place of the raw material to the place of the exporting units. In such a situation, we find that Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), at S. No. 9, 10 & 11, specifies rate Of the Central Tax, on the intra-State supply of services related to Goods Transport as under: Sr.No. Chapter Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 11/2017-Central Tax (Rate) dated (as amended from time to time) "goods transport agency" (GTA) means any person Who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. We find that, a consignment note is a document issued by a GTA against the receipt of goods for the purpose of transporting the goods by road in a goods carriage. Where a consignment note is issued, it implies that the lien on the goods has been transferred and the transporter of the goods becomes responsible for transportation of the goods till its safe delivery to the consignee. In such a situation, consignment note or any other document, by whatever name called, is simply a document showing the responsibility of the transporter and the rights of the persons for whom the goods are transported. By implication, it means that the transporter undertakes the responsibility to transport the goods and promises safe delivery of the goods at the destination. A consignment note is only a document by which the responsibilities and rights are reduced in writing and, therefore, existence or for that matter, absence of the said document cannot have any adverse effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rental services of transport vehicles with or Without operators', as can be inferred from the submissions made by the appellant. This conclusion also finds support from the vehement argument of the appellant that they will not be issuing consignment notes. The main activity involving vehicles of the appellant which will be used for transport of goods by road has been mentioned by the appellant in the appeal but they have mentioned nothing about any other activities which may be required in connection with the main activity of the appellant. In that case, such other activities will be covered under 'Supporting services in transport' mentioned at Sl. No. 11 of Notification No. 11/2017-central Tax (Rate) Date 28.06.2017 (as amended from time to time), as the case may be, as per the exact nature of activities undertaken or services provided by them. 14. We find that the appellant is claiming on its official website (www.kmtrans.in) that they are serving about 90% of car makers viz. Maruti Suzuki, Toyota, Tata, Hyundai, Mahindra etc., are having Fleet Size of 1250, 35 branch offices, 32 loading stations, 80 service support. From this, it is clear that the appellant transporter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay bill format has no connection whatsoever, with the nature of activities undertaken. In any case, mere non-requirement of mentioning of any detail in E-way Bill does not affect liability of payment of GST on any service unless the service has been exempted through an exemption Notification issued by the Government. Hence, we find that the contentions of the appellant concerning format of e-way bill are not relevant to the instant issue. 16. In view of the above discussion, we find that the services to be provided by the appellant will be liable to payment of GST as specified under Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 (as amended) read with exemption Notifications, under the services relating to transportation of goods or rental services of transport vehicle including supporting service, depending upon the exact nature of activity to be carried out by them. In view of the foregoing, we pass the following order: ORDER 17. We reject the appeal filed by the appellant and hold that the services to be provided by the appellant are leviable to GST, as specified under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) read with exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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