By TIOL News Service

ALLAHABAD, MAY 26, 2014: THE assessee is a company registered under the Companies Act, 1956 and is running a Flying Training Institute and Aircraft Maintenance Engineering Institute at Kanpur. It is engaged in providing training and coaching to individuals in the field of flying of aircraft for obtaining Commercial Pilot License from the Director Civil Aviation (DGCA), New Delhi. It is also engaged in providing training for obtaining Basic Aircraft Maintenance Engineering Licence.

In the proceedings, the CESTAT, in view of the decision of the Delhi High Court in Indian Institute of Aircraft Engineering vs. Union of India 2013-TIOL-430-HC-DEL-ST concluded that service tax could not be levied on the assessee.

The CCE, Kanpur has preferred an appeal before the Allahabad High Court against this order.

The following questions of law have been framed:

i.) Whether, the respondent is liable to service Tax on Flying Training Institute and Aircraft Engineering Institutes under Commercial Training or Coaching Services?

ii.) Whether, the course Completion Certificate offered by such Institutes, to successful students, qualifies as any certificate of diploma or degree or any educational qualification recognized by law for the time being in force or not?

The High Court observed that a similar issue arose before the Delhi High Court in Indian Institute of Aircraft Engineering.

After liberally extracting passages from the cited decision, the High Court held that the Counsel for the revenue had not been able to persuade the Court to take a different view.

Holding that the appeal filed by the revenue, therefore, will not give rise to any substantial question of law, the appeal was dismissed.

(See 2014-TIOL-837-HC-ALL-ST)