Page 136 - GSTL_16 April 2020_Vol 35_Part 3

350 GST LAW TIMES [ Vol. 35
The appellant has simply stated that they will be transporting raw material to
some exporting units. Except for this bare information, nothing has been men-
tioned by the appellant in the appeal to describe the exact nature of the activity
proposed to be undertaken and the parties involved in the proposed activity. The
proposed agreement containing the details of the responsibilities and rights of
the parties to the agreement have not been submitted by the appellant. They
have also not explained as to why they will not be issuing the consignment notes
especially when they are already in the similar business of transportation,
through transportation of motor vehicles. The peculiar fact mentioned by them is
that they will not be issuing consignment note but they have not explained as to
why they will not be issuing the consignment notes and what will be the docu-
ment which will govern the terms of the transaction between the service provider
and the service recipient. In any case, the information provided by the appellant
is sufficient to indicate that they will be transporting goods for the client(s) for
whom they will provide the services of transportation of goods by road. In order
to ascertain the exact nature of services to be provided by the appellant, examina-
tion 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 exami-
nation, 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 consign-
ment 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 of 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 28-6-2017 (as amended from time to time), at S. Nos. 9,
10 & 11, specifies rate of the Central Tax, on the intra-State supply of services
related to Goods Transport as under :

Sl. Chapter, Description of Rate Condition
No. Section or Service (per
Heading cent.)
9 Heading (i) Transport of 2.5 Provided that credit of
9965 goods by rail [other input tax charged in re-
(Goods than services specified spect of goods in supply-
transport at item no. (iv)]. ing the service is not uti-
services) lised for paying central tax
or integrated tax on the
supply of the service
(ii) Transport of 2.5 Provided that credit of
goods in a vessel. input tax charged on
goods (other than on
ships, vessels including
bulk carriers and tankers)
used in supplying the ser-
vice has not been taken
[Please refer to Explana-
tion no. (iv)]
GST LAW TIMES  16th April 2020  256