TaxTMI 
TaxTMI 
2013 (5) TMI 592
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....ondent no.4 The Additional Commissioner of Service Tax to the petitioner. 2. Notice of the petition was issued and counter affidavits have been filed by the respondent no.2 CBEC and the respondent no.5 Directorate General of Civil Aviation (DGCA). Vide interim order dated 01.10.2012, the decision in the adjudication proceedings pursuant to the show cause notice aforesaid was directed to abide by the orders in this petition. 3. It is inter alia the case of the petitioner: (i) that the petitioner is an Aircraft Maintenance Engineering Training School approved by the DGCA for providing Aircraft Maintenance Engineering (AME) training and conducting examination as per the course approved by the DGCA under the Aircraft Act, 1934 (the Act) and the Aircraft Rules, 1937 (the Rules) and the Civil Aviation Requirements (CAR) issued by the DGCA under Rule 133B of the Rules supra; (ii) that the petitioner issues a certificate approved by the DGCA to candidates who successfully complete the approved training curriculum and successfully pass the examinations as per the approved course syllabus; (iii) that the DGCA fully controls such training institutes by prescribing syllabus, num....
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....r in the Basic License Examination of DGCA and not to issue any degree, diploma or certificate recognized by law; (iv) that the contention of the petitioner that the AME course conducted by it is approved by the DGCA is not correct; (v) that the exclusion provided under the definition of Commercial Training & Coaching Centre is not applicable to training centres imparting coaching and training for appearing in examinations; (vi) that actually AME degree, diploma or certificate is issued by the DGCA to students who have successfully cleared the examination conducted by it and the role of the petitioner is limited to train the candidates to appear for the examination conducted by the DGCA; (vii) that the DGCA itself does not qualify as an institute recognized by law; (viii) that since the petitioner is collecting the fee directly from the students and not through the DGCA, it cannot avail the exemption under Notification No.10/2003 dated 20th June, 2003; (ix) that the petitioner has contravened the service tax laws with an intention to evade the same. 5. The DGCA in its counter affidavit has pleaded:- (i) that it is a subordinate office of Ministry of Civil Av....
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.... the counsel for the DGCA have been heard. 7. The senior counsel for the petitioner has invited attention to:- (a). Section 5 of the Act empowering the Central Government to make Rules inter alia for securing the safety of aircraft operation including for licensing of persons employed in the operation, manufacture, repair or maintenance of aircraft; (b). Rule 54 of the Rules providing for certification of aircrafts required by the Rules to be signed by appropriately licensed engineers or authorized persons qualified under the terms and conditions of the licence, authorization or approval, to carry out inter alia repair and maintenance and to whom certificates authorized by organizations approved by DGCA have been issued; (c). Rule 61 empowering the Central Government to grant licences, authorizations and approvals to persons to act in the capacity of Aircraft Maintenance Engineers in connection with repair and maintenance of aircrafts and particularly to Sub Rule (2)(A)(c) providing for a requirement of four years in the field of aircraft maintenance engineering and further providing for relaxation for one year for applicants who have satisfactorily completed training i....
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....he candidates eligible but the examination is conducted and the licence issued by the DGCA. 11. We have bestowed our thoughtful consideration to the controversy. 12. We do not find any merit in the objection taken as to the very maintainability of this petition on the ground of it being open to the petitioner to before the Assessing Authority, also urge that the certificate/degree/diploma/qualification awarded by the petitioner is recognized by law and the petitioner is thus exempted from payment of service tax. The CBEC having already, after examination, taken a decision in this regard, the petitioner is correct in contending that the hearing in this regard, even if technically in law, still open before the Assessing Officer, would be a formality with the Assessing Officer unlikely to take a view contrary to that of the Director, as contained in the impugned Instruction. Moreover, the matter having been argued before us, and being of recurring nature, likely to arise qua other such institutes also, it is deemed expedient to return findings on merits of exigibility also. 13. Section 65(27) as it stood till 30th April, 2011 excluded from the domain of commercial training or....
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....On Job Training; (vi) that the format of the said Certificate is also approved by the DGCA; (viii) on the basis of the said Course Completion Certificate and On Job Training certificate, the students are entitled to appear in the examination held by DGCA for grant of licence to be authorized to render services of aircraft repair and maintenance. 17. The Act was enacted to make provision for control of manufacture, possession, use, operation, sale, import and export of aircrafts. Rule 4 prohibits use or operation or assistance in use or operation of an aircraft save in accordance with the Rules. Thus the sale, purchase, possession and use of aircrafts is regulated by law i.e. the Aircraft Act supra. Section 5 of the said Act authorizes the Central Government to make Rules regulating all the said facets i.e. manufacture, possession, use, operation, sale of aircrafts and also for securing the safety of aircraft operation. Section 5A of the Act also authorizes the DGCA to from time to time issue directions with respect to some of the matters for which Rules are authorized to be made and which inter alia includes matters relating to repair and maintenance of aircrafts, the conditions....
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....t has been authorized to grant relaxation with respect of the minimum requirement for engineering graduates, if they appear in Aircraft Maintenance Engineer's license examination. As far as the requirement of minimum practical experience of four years is concerned, the Central Government is authorized to relax the same by one year for applicants who have satisfactorily completed training in institutes approved by the DGCA. Rule 133A empowers the DGCA to inter alia issue notices to Aircraft Owners and Maintenance Engineers and publication entitled CAR and issue directions inter alia relating to maintenance of aircraft. Rule 133B in Part XII B deals with Approved Organizations engaged inter alia in the activity of training schools and requires such organization to comply with such requirements as may be specified in Civil Airworthiness Requirements. Rule 161 makes contravention of the Rules punishable to the extent laid down in Schedule VI to the Rules. 19. The DGCA has with reference to Rule 61 supra provided for relaxation of one year to the minimum practical experience of four years for applicants for the license of Aircraft Maintenance Engineer and has issued CAR F.No.11-690/S....
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....in exercise of which such CAR has been issued are wide enough to also issue a direction with respect to the fee etc. to be charged by such institute. 22. The question which falls for consideration is whether the aforesaid would amount to 'recognition by law' of the Course Completion Certificate and On Job Training Certificate given by such institute. 23. The expression 'recognized by law' is a very wide one. The legislature has not used the expression "conferred by law" or "conferred by statute". Thus even if the certificate/degree/diploma/qualification is not the product of a statute but has approval of some kind in 'law', would be exempt. 24."Recognize" is defined, in the Black's Law Dictionary, 8th Edition as confirmation of an act done by another person as authorized, formally acknowledging the existence; and, in Concise Oxford Dictionary as acknowledging the existence, validity or legality of. 25. We are of the view that the Act, the Rules and the CAR, having provided for grant of approval to such institutes and having laid down conditions for grant of such approval and having further provided for relaxation of one year in the minimum practical training required fo....