DETERMINATION OF LIABILITY AND SETTLEMENT TERMS IN THE CASE OF MS GIRI TRANSPORT COMPANY (PROP. SH. SUNIL GIRI)”- AAAR RAJASTHAN
RAJASTHAN APPELLATE AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Before the AAAR comprising of :
1.Sh. Mahendra Ranga, Member (Central Tax)
2.Dr. Ravi Kumar Surpur, Member (State Tax)
CASE TITLE :- M/s Giri Transport Company
(GST AAAR RAJASTHAN)
Appeal NO. RAJ/AAAR/APP/04/2022-23 dated 12.08.2022 and 14.10.2022
Advance Ruling NO. RAJ/AAR/2022-23/08 dated 16.06.2022
Date of Judgment/ Order – 1st July 2024
BRIEF OF FACTS
Para No. 1. Shri Sunil Giri, Proprietor of M/s Giri Transport Company (hereinafter referred to as ‘Respondent’) having GSTIN – 08CRBPG5309NIZM, a Goods Transport Agency (GTA) was about to enter into contract with their customer for providing service of transportation of goods by road, therefore, filed an application dated 09.03.2022 for seeking Advance Ruling under Section 97(2)(c) of CGST/SGST Act, 2017 for determination of time and value of supply of goods or service or both.
Para No. 2.The Respondent had sought Advance Ruling in respect of following question of law:
“Whether the value of diesel provided by the customer (service recipient) to the trucks is to be added to the.freight charged by the Applicant for the purposes of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’) && the Rajasthan Goods and Services Tax Act (‘RGSTAct. 2017 ‘)?
Para No. 3. According to the contract between the Respondent and their customer, diesel necessary for transporting goods will be provided by the customer (service recipient) free of charge and used exclusively for the transportation service. The freight cost is determined without including diesel expenses as agreed upon in the contract. The Respondent, a Goods Transport Agency (GTA) shall not responsible for procuring or paying for the diesel filled in the trucks by the service recipient, which is solely for the designated transportation trips.
Para No. 4. As per the contract, the Respondent (GTA) will be required to send the truck to the customer’s factory. After loading of goods, diesel required, calculated on the basis of load and distance for the transportation of such consignment to the destination will be filled in the fuel tank of the truck.
Para No. 5. Upon completing the transport service, the Respondent (GTA) will raise then invoice charging the freight charge specified in the consignment note excluding the value of diesel provided at no cost by the customer. The invoice will contain detail of the consignment notes, serving as acceptance of the transportation contract at the agreed rate. The Respondent (GTA) will not record the diesel provided by the customer in their accounts
IMPORTANT PARAGRAPHS
Para No. 6. The Authority of Advance Ruling, Rajasthan (‘AAR’) vide Advance Ruling No. RAJ/AAR/2022-23/08 dated 16th June, 2022 pronounced that “the value of diesel filled free of cost (FOC) by the service recipient is not includable in the value of the GTA service proposed to be provided by the Applicant (GTA) in thefacts and circumstances of the present application subject to conditions as mentioned in draft Transport Service Agreement/ contract incorporated in the body of this decision/ruling.”
Para No.7. On being aggrieved with the Order dated 16.06.2022 passed by the AAR, Rajasthan, the Principal Commissioner, CGST Commissionerate Jodhpur filed an appeal before this authority on 12.08.2022 stating therein that due to late communication of AAR Order dated 16.06.2022 to them on 11.08.2022, they were unable to file the appeal against the above Order within a period of thirty days from the date of communication of the Order. They have also stated that the delay in filing of appeal is very meagre and should be condoned in view of the proviso to Section 100 (2) of the CGST Act, 2017. Subsequently, the Deputy Commissioner, State Tax Department, Suratgarh are also in appeal before us against the impugned AAR Order on 14.10.2022 showing therein date of communication of AAR Order as 15.09.2022. They also requested to extend the due date of filing of appeal by 30 days as per proviso to the Section 100(2) of the CGST Act, 2017.
ORDER
Para No. 28. We hold that the preliminary objections raised by the Respondent against the appeals filed by the department against the Advance Ruling dated 16.06.2022 are not sustainable and the appeals are maintainable and deserve to be decided on merits. The Respondent is, therefore, hereby requested to make submissions on merits and appear for personal hearing as and when fixed.
