TMI Blog2022 (4) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... parcels of Ashapura from one destination to other, wherein Ashapura is both the consignor and consignee at the respective bus stations. Ashapura utilises the services of GSRTC for enabling it ( Ashapura) for door to door delivery of parcels - the specific activity of GSRTC supplying parcel office space/cabin/shed to Ashapura falls under the category of infrastructural support services which is a subset of Business Support Services. Thus, GSRTC is not a Courier Agency as it is not involved in door to door transportation of goods/articles/documents. It is noted from Notification 11/2017- CT (R), a goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. In present case, GSRTC is providing service in relation to transport of goods by road and GSRTC issues parcel receipt. Thus, GSRTC supplies Business Support Service to its recipient - SAC is 998599, covering Other Support Services n.e.c.; GST rate being 18% - GSRTC is neither a GTA nor a courier agency. - GUJ/GAAR/R/2022/15 - - - Dated:- 22-3-2022 - ATUL MEHTA AND ARUN RICHARD, MEMBER Present for the applicant : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation should be of time sensitive documents ii. The main activity which distinguishes a courier agency from other transport agencies is that the courier agencies arranges transportation from door of the sender to the door of the addressee. In other words, the documents, goods, or articles are expected to be picked by the representative of the courier agency from the premises of the sender and later transported and delivered to the premises of addressee. In the present case, GSRTC is not engaged in door to door transportation of time sensitive documents. Rather, it is Ashapura which is collecting documents and parcels and it delivers to the ultimate customer at their address. It is Ashapura which is engaged in door-to-door transportation of documents and parcels. GSRTC is merely transporting goods in its buses that is being handed over by Ashapura from one destination and to be dropped at another destination. GSRTC does not have a knowledge as to for whom the document or parcel ultimately belongs to. iii. The term used in the definition is that the person must be engaged in the door-to-door transportation. The term engage means to take part or devote attention an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Ashapura to select and identify as to whether a particular bus will be able to transport its documents in time that it has contracted with its customers or not. For Ashapura, GSRTC is not changing its route or timings. Further, a person may have to deliver its documents in any part of India, however, GSRTC has its operations in Gujarat and few other states, but not in the entire country. Thus, the GSRTC is not engaged in transportation of time sensitive documents. From the above, it is concluded that the activity done by GSRTC is not classifiable under the definition of courier agency . vi. As per section Para 2(ze) of Notification No 12/2017-Central Tax (Rate), Goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. vii. Para 2(zd) of Notification No 12/2017-Central Tax (Rate) defines goods carriage; Goods carriage has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988). As per Section 2(14) of the Motor Vehicles Act, Goods carriage means any motor vehicle constructed or adapted for use solely for the carriage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Central Excise, Kolhapur [2017 (11) TMI 297- (Mumbai- Tri)] Premier Industries India Ltd. Versus C.C.E., Indore [2017 (11) TMI 481-(Mumbai- Tri)] M/s. Kranti SSK Ltd. Versus Commissioner of Central Excise Service tax, Kolhapur [2017 (6) TMI 275- (Mumbai- Tri)] M/s Western Coal Fields Ltd. Versus CCE, Nagpur [2017 (5) TMI 398- (Delhi- Tri)] xiv. Since, in the present case, no consignment note has been issued by GSRTC for the goods transported of Ashapura, therefore, the activity done by GSRTC is not classifiable under the category of goods transport agency . xv. Thus, the activity performed by GSRTC is transportation of goods by Road other than courier agency and GTA and therefore, is exempt in terms of Sr. No 18 of Notification No 12/2017-Central Tax (Rate). 9. GSRTC has submitted the following SAC codes: SAC Description 9965 Goods Transport Services 108 Group 99651 Land transport services of Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an aircraft operator, in relation to transport of goods by aircraft; iii. Thus, in the above case, the aircraft remains same and used for twin purpose, one for transportation of passenger as well as another for transportation of goods. As per section 65(3b) of the Finance Act, 1994, aircraft operator means any person who provides the service of transport of goods or passengers by aircraft; 11. Similar to above, GSRTC submits that they are also providing services of transportation of passengers as well as transportation of goods in its vehicles. Just as for one air craft which carries passengers and goods, the two taxable categories are there, viz., transport of passenger by aircraft and transport of goods by aircraft , similarly, in the present case, the bus remains same, which is used for twin purpose., viz., transport of passengers and transport of goods. As a reason, for transport of goods, the activity will be stated as transport of goods by Road . Thus, as per the provisions of the Motor Vehicles Act, 1988, the buses are also used for transportation of goods, hence, will be considered as goods carriage. 12. GSRTC cites section 65(105)(zzzp) which taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tched to the consignee who on presentation take the delivery of goods. The RR can be made self or on the name of the receiver. When it is made under the self name, it is endorsed in favour of the consignee otherwise goods cannot be released. 14. GSRTC submits that in transportation of goods through rail, the customer goes to the booking office and delivers the goods. When the goods are given, the railway authorities give the railway receipt. The railway authorities then transport the goods from origin to the destination. At the destination, the recipient collects the goods from the office of railway by showing the railway receipt. In this case, the activity is not taxed under the category of courier 15. GSRTC submits that similarly, in transportation of goods in a vehicle which is the service provided by GSRTC, the customer provides services of transportation of goods handed over to it by Ashapura in its busies. The goods are then transported from origin to the destination in the space provided in the buses. At the destination, the recipient collects the goods from the office of GSRTC. Thus, this activity should also not be taxed under the category of Courier as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Tax (Rate) whereby GSRTC is transporting parcels of Ashapura, but is neither GTA nor courier agency? (c) What will be the rate at which GST is required to be charged by GSRTC, in case at (b) above, it is held that GSRTC is not eligible for exemption? (d) What will be the SAC code for the transportation of goods by Road other than courier and GTA provided by GSRTC? (e) Whether the tax, in case it is required to be paid as held in (c) above, be considered to be covered under Notification No 13/2017-Central Tax (Rate) whereby the service recipient is required to make payment of tax instead of service provider? Personal Hearing 22. Personal hearing granted on 18-2-22 was attended by Shri Rohan Thakkar, CA and they reiterated the submission. Additional Submission by GSTRC: 23. GSRTC vide letter dated 1-3-22 submitted a Sample Transport Receipt: 23.1 The content of the Receipt is explained as follows: i. Valsad to Vyara indicates that the parcels have been loaded at Valsad Depot and Unloaded at Vyara Depot; ii. Vapi Depot, indicates that the receipt has been generated from Vapi Depot. No 010042 represents the Serial Number of the M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be responsible, if such parcels are misplaced or lost or any manner damage to the parcel or courier. 7 (h) The total weight of the parcel, allied services and courier to be transported on a bus shall not exceed single parcel 80 kilograms and parcel height 40 inch allowed only. 7 (n) The Licensor shall not be responsible for any loss or damage or shortage that may be suffered by the Licensee due to withdrawal or cancellation of buses, agitations, vandalism by the crew or outsiders, strikes, war, flood, fire, accident natural calamities or any other cause like act of god. 7(o) The Licensor reserves the right to transport their goods, daks and other departmental (GSRTC) items by buses and the Licensee shall not have any right to demand or claim charges for transport of these items. 7(r) The Licensee should take necessary safety precautions for passengers, Licensor's property and other road users while transporting parcels/ courier by the buses of the Licensor. The licensor shall not be responsible for any loss or damage. 25.1 GSRTC submits that it is not responsible for any loss of goods that are being transported by it and the responsibility to do safe tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty carried out by it will not be classified as support service under GST. 29. GSRTC submitted the following from Notification No. 11/2017-CT (R): 11 Heading 9967 (Supporting services in transport) 5 [(i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use). Explanation .- goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken. [Please refer to Explanation no. (iv)] or 6 Provided that the goods transport agency opting to pay central tax @ 6% under this entry shall, thenceforth, be liable to pay central tax @ 6% on all the services of GTA supplied by it.] (ii) Supporting services in transport other than (i) above. 9 - 29.1 GSRTC has submitted five di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent from the activity of transportation of goods by road. Thus, the activity of transportation of parcels of Ashapura will not be considered as support service on road transport. Revenue s submission 31. Revenue has neither submitted its comments nor appeared for hearing. Findings 32. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and GGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 33. We have carefully considered the submissions made by GSRTC. 34. On reading of the Agreement entered by GSRTC with Ashapura, we find that said agreement expired on 30-6-20. Shri Thakkar during the personal hearing, submitted that GSRTC intends to do such activities, as detailed in agreement submitted before us, in future. GSRTC vide its letter dated 18-2-22 submitted that it intends to carry on such activities on the same terms and condition ( as per submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcel office space/cabin/shed to Ashapura falls under the category of infrastructural support services which is a subset of Business Support Services. We hold GSRTC supplies Business Support Services to its service recipient. The standard agreement submitted before us asserts our findings. 37. As already discussed, in the previous para, we find that GSRTC is not a Courier Agency as it is not involved in door to door transportation of goods/articles/documents. 38. We note that GSRTC transports goods, as detailed in agreement before us, by road in its buses. We note from Notification 11/2017- CT (R), a goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. In present case, GSRTC is providing service in relation to transport of goods by road and GSRTC issues parcel receipt. Though not specifically mentioned in these parcel receipts, we infer that both the consignee and consignor will be Ashapura. We note that Parcel receipts do not have the details of the goods transported. During the personal hearing, Shri Thakkar was not able to clarify, if the details of the goods entered in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins to eligibility of Notification 155/86- Customs. Rupa Co case law pertains to Textile machinery imported under EPCG. Further, we note that GSRTC has cited a few case laws pertaining to Income Tax such as Mysore Minerals and Gwalior rayon silk case laws. The Hercules Tyre case law pertains to the scope of Notification 47/72- central excise. The Tata oil mills case law pertains to exemption to soap on use of rice bran oil in its manufacture. The HMM case law pertains to metal screw cap on horlics bottle and applicability of Notification 201/79- central excise. New holland tractors case law pertains to eligibility of Notification 23/2004 and 6/2006- central excise pertaining to captively consumed engines in manufacture of tractors. We found that GSRTC made us do a futile exercise to go through all these case laws cited by it at para 27, for the sole reason that these have no bearing on the facts of the present case. 43. In conspectus of aforementioned discussion and findings, we pass the Ruling, RULING 1. In this specific scenario presented before us, GSRTC supplies Business Support Service to its recipient. 2. SAC is 998599, covering Other Support Services n.e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
