Page 139 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] IN RE : K.M. TRANS LOGISTICS PRIVATE LIMITED 353
volve transportation of raw material for the exporting units. In such a situation, it
can also be inferred that the appellant will be providing their own vehicles either
to the raw material supplier or to the exporting units for use in the transportation
of the goods which is raw material for the exporting units. In that case, the appel-
lant will be carrying out an activity which is in the nature of ‘rental services of
transport vehicles with or without operators’, as can be inferred from the sub-
missions made by the appellant. This conclusion also finds support from the ve-
hement 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 re-
quired in connection with the main activity of the appellant. In that case, such
other activities will be covered under ‘Supporting services in transport’ men-
tioned at Sl. No. 11 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-
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 Su-
zuki, 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 is not from unorganized sector of transporters and has
a vast network all over India for transportation of goods. They are providing
services to various manufacturers of motor vehicles involving transportation of
motor vehicles which are carried from the factory to the various cities in India
where the authorised dealers are located. In this process of transportation, two
types of services either by way of activity described as goods transport agency
services or by way of rental services of transport vehicles can be provided. In the
instant case of the appellant, if the lien of the goods is transferred and the appel-
lant becomes responsible for the goods till its safe delivery to the consignee, the
services will be classifiable as goods transport agency services and issuance of
consignment note or its non-issuance does not make any difference so far as the
nature of the activity carried out by them is concerned. Mere non-issuance of the
consignment note in such cases does not make them entitled for exemption from
payment of GST. However, if the vehicles are provided to the client on rental for
use as per their requirement, the services will be classifiable as ‘rental services of
transport vehicles’.
15. Further, the appellant is carrying E-way Bill while providing
transport service. E-way bill is applicable as per the provisions mentioned in No-
tification No. 12/2018-Central Tax, dated 7-3-2018. In the present appeal, the ap-
pellant has taken a plea that the format of E-way Bill reproduced and discussed
in the impugned order along with notes appended to the format of E-way Bill,
has been wrongly quoted leading to misinterpretation of the requirement of de-
tails at column referring “Transport Document Number”. The appellant has fur-
ther contended that nowhere in the E-way Bill format is a requirement of men-
tioning the Consignment Note No./LR/GR issued by Goods Transport Agency
or transporter and E-way Bill can be generated without generating Consignment
note/LR/GR and since there is no consignment note issued, thus, the services
are out of the purview of GST and will categorize as non-taxable service. We find
that the format of E-way Bill, in whatever manner designed or amended, is not
relevant for deciding the classification of the activity carried out by them. The

GST LAW TIMES  16th April 2020  259