TaxTMI 
TaxTMI 
2025 (7) TMI 2038
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...., liable to pay service tax. The demand was confirmed invoking extended period and penalties were imposed under the Sections 76, 77 and 78 of the Finance Act, 1994. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Counsel on behalf of the appellant submits that the appellant is an educational society with the object of providing Aircraft Maintenance Engineering (AME) courses to students for obtaining basic license in light aircraft and piston engine. The DGCA granted approval and recognition for these courses. Since, the definition of into 'Commercial Training or Coaching Service' excludes the following services from the purview of into 'Commercial Training or Coaching Service', (a) Training or coaching in the field of sports, (b) Pre-school coaching and training centre (c) Any institute or establishment which issues any certificate recognized by law. (d) Any institute or establishment which issues any diploma recognized by law. (e) Any institute or establishment which issues any degree recognized by law. (f) Any institute or establishment which issues any educational qualification recognized by l....
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....or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force;" Based on the above definitions, the Commissioner held that appellant did not fall under the exclusions since after the training, the candidates were to take further examinations stipulated by DGCA to get qualified for the license. Thus, invoking extended period confirm the demand. 5. In similar a set of facts, we find that the Hon'ble High Court of Delhi in the case of Indian Institute of Aircraft Engineering Vs. Union of India (supra) observed as follows: "13. Section 65(27) as it stood till 30th April, 2011 excluded from the domain of commercial training or coaching centres, training centres or establishments issuing any certificate or diploma or degree or any educational qualification recognized by law. Even after 30th April, 2011, though the part of Section 65(27) making 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 exempled coaching or training leading to grant of a certificate or diploma or degre....
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....e, 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 ie. the Aircraft Act supra. Section 5 of the said Act authorizes the Central Government to make Rules regulating all the said facets ie, manufacture, possession, use, operation, sale of aircrafts and also for securing the safety of aircraft operation. Section 6A of the Act also authorizes the GCA 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 under which the aircraft may be Juwn, and licensing of persons engaged in the operation, repair or maintenance of aircrafts Section 5A(2) requires all persons whom such directions are issued to comply with the same. The CAR owe their origin and binding nature lo Section SA of the Act. Section 11 makes flying of an aircraft in a manner so as to cause danger to any person, and which danger would be implicit flying in breach and violation of the Rules an....
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....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 1338 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/Sec 2/E-VIII/2012-A)(2) dated 30th May, 2008 dealing with approval of training Institutes and which inter alia provides: (a) that the period of training in the approved training institute would be counted as maintenance experience for the purpose of completing total aeronautical experience required to become eligible for appearing in the Aircraft Maintenance Engineering license examinations; (b) objectives of such training: ....
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..... 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/quafification 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 institules 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 for taking the DGCA examination, have recognized the Course Completion Certificate and the qualification offered by such institutes. The certificate/training/qualification offered by Institutes which are without approval of DGCA would not confer the benefit of such relaxation. Thus, the certificate/training/qualification offered b....