ABC is engaged in Manufacturing of Steel with turnover of 750 Crores and located in the State Of Andhra Pradesh. It used to procure Raw Materials ( Ore / Coal / Coke ) form different vendors through Railway rakes. Raw Materials shall be transported by Rail. It receive Raw Materials at Railway siding and get unloaded Goods from train. From Railway siding Raw Materials is shifted to their Factory by Road with multiple Trucks. One Railway rake material may be shifted to the Factory by 80 to 100 Trucks. The distance between Railway siding to Factory is 20 KM approx. Vendor has generated One single `E way bill ` for total Quantity (say for example 3,000 Mts ) form his location to Factory. (It means materials shall come from vendor location to Railway siding by Rail and from Railway siding to Factory by Road) Question : 1. After receiving the materials at Railway siding, ABC is shifting the materials to their Factory by Trucks. Is it required to generate E way bill for each Truck by ABC ? 2. Since Vendor has generated single E way bill for whole Quantity up to Factory, Can ABC shift Raw Materials from Railway siding to their Factory on the basis of E Way bill generated by Vendor ?3.What documents are required to accompany with each Truck carrying materials from Railway siding to Factory ?

ANSWER

FACTS OF THE CASE:

ABC engaged in Manufacturing of Steel used to procure Raw Materials ( Ore / Coal / Coke ) from different vendors through Railway rakes. One Railway rake material may be shifted to the Factory by 80 to 100 Trucks. The distance between Railway siding to Factory is 20 km approx. Vendor has generated One single E way bill for total Quantity from his location to Factory. (It means materials shall come from vendor location to Railway siding by Rail and from Railway siding to Factory by Road).

LAW APPLICABLE:
CGST RULE 138

(14) Notwithstanding anything contained in this rule, no e-way bill is required to be generated'
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(n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55.

FAQ'S issued by CBIC

• How to generate e-way bill, if the goods of one invoice is being moved in multiple vehicles simultaneously'

Where the goods are being transported in a semi knocked down or completely knocked down condition, the EWB shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment as per CGST Rule 55 which provides as under:

(a) Supplier shall issue the complete invoice before dispatch of the first consignment;

(b) Supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) Original copy of the invoice shall be sent along with the last consignment

Please note that multiple EWBs are required to be generated in this situation. That is, the EWB has to be generated for each consignment based on the delivery challan details along with the corresponding vehicle number.

INTERPRETATION:

E-Way bill is complete only when Part-B specifying the vehicle number which is carrying the goods is entered. Otherwise printout of EWB would be invalid for movement of goods.

Where goods pertaining to one invoice are transported in multiple vehicles, the e-way bill shall be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment.

Therefore goods cannot be moved from Railway rack to factory in 80-100 trucks on single EWB generated by vendor, EWB shall be generated separately for each truck.

Further as per sub rule 14(n) of Rule 138 EWB is not required where the goods are being transported upto a distance of 20km from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor.

In the present case goods are moved from railway racks to factory therefore EWB is required to be generated even if distance between Railway siding to Factory is 20 km approx.

For movement of goods to factory the person in charge shall carry the invoice or bill of supply or delivery challan, bill of entry as the case may be and a copy of the e-way bill number generated from the common portal.

CONCLUSION:

1. ABC is required to generate e-way bill for each truck.
2. ABC cannot shift Raw Materials from Railway siding to his Factory on the basis of single E Way bill generated by the vendor.
3. The person in charge shall carry challan (as per Rule 55) along with a copy of the e-way bill number generated from the common portal. (Reply dt. 04/10/2021)