AAR : Transportation services naturally bundled with supply of goods, taxable as 'composite supply'

AAR holds that services of transportation, in-transit insurance and loading / unloading in relation to separate contract for supply of materials at ex-factory price, shall be liable to GST at rate applicable to supply of goods; Notes that supply of goods under First Contract cannot be executed independent of Second Contract providing for transportation for the former does not include the provision and cost of transportation and delivery; Moreover, the two contracts are linked by a cross fall breach clause that specifies that breach of one contract will be deemed to be a breach of other contract, and thereby turn them into a single source responsibility contract; Resultantly, observes that the two promises – supply of goods and their transportation to contractee’s site – are not separately enforceable, the supplies of goods and services are naturally bundled; Accordingly, states, “…supplies as that of applicant’s should be construed as specifically mentioned under the GST Act as Composite Supply with supply of goods as the principal supply and services like transportation, in-transit insurance etc ancillary or incidental to the principal supply...” : West Bengal AAR