Page 138 - GSTL_16 April 2020_Vol 35_Part 3

352 GST LAW TIMES [ Vol. 35
note, by whatever
name called.
(ii) Supporting ser- 9 -
vices in transport oth-
er than (i) above.

As mentioned under Notification No. 11/2017-Central Tax (Rate), dated 28-6-
2017 (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 trans-
porter 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 respon-
sibility of the transporter and the rights of the persons for whom the goods are
transported. By implication, it means that the transporter undertakes the respon-
sibility to transport the goods and promises safe delivery of the goods at the des-
tination. A consignment note is only a document by which the responsibilities
and rights are reduced in writing and, therefore, existence or for that matter, ab-
sence of the said document cannot have any adverse effect on the responsibilities
or rights as agreed between the parties.
13. We find that the appellant simply described the activity to be un-
dertaken as under :
(i) That the appellant is providing a service of transport of certain raw
materials to some exporting units using their own motor vehi-
cles/lorries.
(ii) That the goods will be transported under E-way Bill rules but there
will be no generation of consignment note.
The above information does not include information as to the consignor or con-
signee of the goods, whether they are different or the same persons and which of
them will be entering into agreement with the appellant. In any case, “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. We find that when a person who provides service in relation to transport
of goods by road and the lien on the goods has been transferred and the trans-
porter of the goods becomes responsible for the transportation of the goods till
safe delivery to the consignee, he essentially undertakes the responsibility cast
upon a goods transport agency and the consignee or consignor of the goods,
whom the services are provided, gets certain rights which can be exercised
against the transporter in respect of transportation of the goods. In such a situa-
tion, ideally the transporter issues a document called consignment note or
LR/GR etc. The document may be called anything but the rights and responsibil-
ities of the parties are governed by such document in the common trade practice.
The activities as described by the appellant are those undertaken by a goods
transport agencies as can be seen from the brief description provided by them.
However, the appellant has emphasized upon the fact that they will not be issu-
ing consignment notes. Further, they have not mentioned the details of consignor
and consignee of goods; rather they have simply stated that the activity will in-
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