2024 (1) TMI 642

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.... and also are providing Landing and Parking Services to the other aircrafts which land in the premises of the institute; on the allegation that the appellants were providing "Commercial Training and Coaching Centre Services" and "Airport Service"; have not registered themselves and have not discharged the applicable service tax, a show-cause notice dated 11.04.2012 was issued to the appellants demanding payment of service tax of Rs.82,67,149/- (Rs.81,89,407 on Commercial Training and Coaching Centre Services and Rs.77,742/- on Airport Service); Adjudicating Authority vide impugned order dated 20.07.2012 confirmed the demand of Rs.69,71,463/-, along with interest, after allowing cum-duty benefit; the Adjudicating Authority, however, refraine....

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.... and perused the records of the case. We find that the Hon'ble High Court of Delhi in the case of Indian Institute of Aircraft Engineering (supra) has held as follows: "27. The reasoning in the impugned Instruction dated 11th May, 2011 that because the qualification awarded by the Institute does not culminate in automatic issuance of license/authorization by the DGCA to certify the repair, maintenance or airworthiness of an aircraft and for which purpose a further examination to be conducted by the DGCA is to be taken, in our view mixes up and confuses, 'qualification' with 'a license to practice on the basis of that qualification'. An educational qualification recognized by law will not cease to be recognized by law merely because....

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....ppeal records. The question is whether the training imparted by the appellant is excluded from Service Tax liability was discussed by the Hon'ble Delhi High Court in similar set of facts in Indian Institute of Aircraft Engineering (supra). The Hon'ble Delhi High Court found that the expression "recognized by law" is a very wide one. Even if the Certificate is not the product of a statute but has approval of some kind in "law" would be exempted. Following the said ratio the Delhi High Court held against the tax liability of such training activity. We note that the order of the Delhi High Court in the said case has been stayed by the Hon'ble Supreme Court. However, it is to be noted that such stay, as held by the Hon'ble Supreme Court in Shre....