Karnataka HC rules Pattadar Pass Book cum Title Deed taxable at 18% under HSN 4820 as stationery article

The Karnataka HC dismissed a writ petition regarding GST classification of Pattadar Pass Book cum Title Deed. The court held that this document, containing land ownership details and issued by Revenue Department under Record of Rights Act, constitutes a composite supply under CGST Act 2017. The HC ruled it is classifiable under HSN 4820 as stationery article taxable at 18%, not under HSN 4904/4907 at 12%. The court emphasized that revenue record entries cannot establish title, citing SC precedent, and affirmed that registered documents or revenue officer certificates serve as documents of title after payment of registration fees and stamp duty.

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Issues Involved:
1. Classification of 'Pattadar Pass Book cum Title Deed' under the Customs Tariff Act.
2. Determination of applicable GST rate for 'Pattadar Pass Book cum Title Deed'.
3. Validity of the orders passed by the Authority for Advance Ruling and the Appellate Authority for Advance Ruling.

Issue-wise Detailed Analysis:

1. Classification of 'Pattadar Pass Book cum Title Deed' under the Customs Tariff Act:
The core issue is whether the 'Pattadar Pass Book cum Title Deed' should be classified as a 'document of title' under HSN 4907 or as an 'article of stationery' under HSN 4820. The petitioner argued that the document should be classified under HSN 4907, emphasizing its role in land ownership and financial transactions. However, the court noted that the document is essentially a record of rights and not a document of title. The court referenced several legal provisions and precedents, including the Telangana Rights in Land and Pattadar Passbooks Act, 1971, to conclude that the 'Pattadar Pass Book cum Title Deed' is not a document of title but a revenue record. Thus, it should be classified under HSN 4820 as held by the Authority for Advance Ruling and the Appellate Authority for Advance Ruling.

2. Determination of applicable GST rate for 'Pattadar Pass Book cum Title Deed':
The petitioner's contention was that the GST rate should be 12% under Tariff Entry 4907 00 90. However, the court upheld the classification under HSN 4820, which attracts an 18% GST rate. The court referred to the Circular No. 11/11/2017-GST and Notification No. 11/2017-Central Tax (Rate), which clarify that printing services where the physical inputs belong to the printer are classified under Heading 9989 and taxed accordingly. Since the 'Pattadar Pass Book cum Title Deed' falls under this category, the applicable GST rate is 18%.

3. Validity of the orders passed by the Authority for Advance Ruling and the Appellate Authority for Advance Ruling:
The petitioner challenged the orders of the Authority for Advance Ruling and the Appellate Authority for Advance Ruling, which classified the 'Pattadar Pass Book cum Title Deed' under HSN 4820. The court examined the reasoning provided by these authorities and found no perversity or infirmity in their rulings. The court emphasized that the decisions cited by the petitioner were in the context of civil property disputes and did not pertain to tax classification. Consequently, the court dismissed the writ petition, affirming the classification under HSN 4820 and the corresponding GST rate of 18%.

Conclusion:
The court dismissed the writ petition, upholding the classification of 'Pattadar Pass Book cum Title Deed' under HSN 4820 and the applicable GST rate of 18%. The orders of the Authority for Advance Ruling and the Appellate Authority for Advance Ruling were found to be valid and without any infirmity.

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