EXAMINE the correctness of Mr. Shambu Singh's assessment while recording the expense for rental for tipper lorries hired from M/S Heavy Movers.

The issue which arose for consideration here was whether transport of minerals within a mining area within the Sigma mine's mining pit head to railway siding, by vehicles deployed with driver for a period of 3 months would be covered under Entry 18 of Exemption Notification No. 12/2017 CT(R) dated 28.06.2017 which exempts transport of goods by road (except by a GTA). This is the contention of M/s Heavy Movers. Usually in such cases vehicles such as tippers, dumpers, loaders, trucks etc., are given on hire to the mining lease operator (PML in this case). Expenses for fuel are generally borne by the recipient of service (PML in this case). The vehicles with drivers are at the disposal of the mining lease operator for transport of minerals within the mine area (mining pit to railway siding, beneficiation plant etc.) as per his requirement during the period of contract. Such services are nothing but “rental services of transport vehicles with operator". The person who takes the vehicle on rent (PML in this case) defines how and when the vehicles will be operated, determines schedules, routes and other operational considerations. The person who gives the vehicles on rent with operator (M/s Heavy Movers) cannot be said to be supplying the service by way of transport of goods. Accordingly, it is clarified that such renting of trucks and other freight vehicles with driver for a period of time is a service of renting transport vehicles with operator and not service of transportation of goods by road. Consequently, it is not eligible for exemption under Entry 18 1 . In conclusion, Shambu Singh is correct in this opinion that the service provided by M/S Heavy Movers is taxable, subject to GST. M/s Heavy Movers should therefore revise its invoice before it can be processed by Shambu Singh for PML's accounting records.