2014 (5) TMI 955

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....elhi High Court in Indian Institute of Aircraft Engineering vs. Union of India1 has concluded that service tax could not be levied on the assessee. 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 assessee, namely M/s Garg Aviations Limited is a company registered under the Companies Act, 1956 and is running a Flying Training Institute a....

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....ing such exclusion has been deleted but the Notification dated 25th April, 2011 supra issued in exercise of powers under Section 93 of the Finance Act has exempted ,,coaching or training leading to grant of a certificate or diploma or degree or any educational qualification which is recognized by any law from the whole of Service Tax leviable under Section 66 of the Finance Act‟. 14.We have wondered, what could be the reason for exempting from payment of service tax those training or coaching centres, even though commercial, whose certificate/degree/diploma/ qualification is "recognized by law‟. The only plausible reason, according to us, can be to exclude from ambit of service tax those training or coaching centres which are o....