The Karnataka Appellate Authority of Advance ruling(AAAR) while affirming the Advance Ruling by AAR ruled that 18% GST is applicable on Pattadar Passbook cum Title Deed.
The appellant, M/s Manipal Technologies Ltd. is engaged in the business of printing books, magazines, calendars, dairies, bank pass books, bank account opening forms and various other stationery items required for banking industries, educational institutions and various other customers.
The appellant filed an application for Advance Ruling under section 98 of the CGST Act, 2017, and KGST Act, 2017 on the question as to whether Pattadar Pass Book cum Title Deed is a Document of Title” classifiable under HSN 4907 or as a “Passbook” under HSN 4820.
Aggrieved by the said Ruling of the Authority, the appellant has filed an appeal under section 100 of the CGST Act, 2017, and KGST Act, 2017 on various grounds.
It was decided by the Karnataka Advance Ruling Authority that the Pattadar Passbook cum title deed is appropriately classifiable under HSN 4820.
Appellant was awarded a contract by the Government of Telangana through Telangana State Technology Services Ltd. for Security Printing and Delivery of Pattadar Pass Book cum Title Deed to all Pattadars and landowners on behalf of Chief Commissioner Land Administration (CCLA). The raw material required for the printing of Pattadar Pass Book cum Title Deed belongs to the appellant whereas the data content for printing is supplied by the CCLA in electronic format.
Appellant submitted that this Pattadar Pass Book cum Title Deed (PPB cum TD) is a document in the form of a small bound book containing the details of land owned by a person (Pattadar). Photo identity of Pattadar and changes of ownership subsequent to the issue of PPB cum TD This PPB cum TD is issued by the Revenue Department under the Law called Record of Rights Act (RR Act).
Appellant submitted that finding of the Authority of Advance Ruling is that the patted passbook is not a document of title in as much as the record of rights in the office of the Mandal Revenue Officer is the actual record of title and ownership of land; that the passbook and the title deed prepared by the Mandal Office and given to the beneficiaries are only records which convey the legal position as in existence in the record of rights maintained by the Revenue Officer.
In this regard, Appellant submitted that the understanding of the Authority of Advance Ruling is misplaced in as much as the Records of Rights maintained by the Mandal Revenue Officer is merely a record and not a document of title. Ideally, a document of title is the document in possession of the holder of the land, be it in the capacity of owner, tenant or otherwise.
The Authority consisting of members D.P. Nagendra Kumar and M.S. Srikar rejected the contentions of the Appellant and held that Pattadar Passbook cum title deed is appropriately classifiable under HSN 4820 and 18% GST is applicable.
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