CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED Vs. COMMISSIONER OF SERVICE TAX
LAWS(AR)-2010-2-8
AUTHORITY FOR ADVANCE RULINGS
Decided on February 04,2010

Appellant
VERSUS
Respondents

JUDGEMENT

J.K. Batra, Member - (1.) M /s CAE Flight Training (India) Pvt. Ltd., Bangalore, (hereinafter referred to as CFTI), the applicant, is a joint venture between Flight Training Device (Mauritius) Ltd, a 100% subsidiary of CAE Inc., Canada and Emirates CAE Flight Training LLC, Dubai. The applicant is engaged in providing various Flight Training Services at its facility in Bangalore. It now intends to provide aircraft specific "Type Rating Training" to the trainee pilots as part of its flight training services.
(2.) CFTI has stated that the trainee pilots after undergoing the requisite basic flight training at flying schools are granted a Commercial Pilot's Licence (CPL) which enables them to fly only small aircraft such as Diamond and Cessna. The Commercial Pilot's Licence per -se does not allow or permit the holder to fly commercial passenger aircrafts such as B737s and A320s unless the holder undergoes an aircraft -specific type rating training. It is only after they have undergone the aircraft -specific type rating training and after their licence is endorsed to that effect that they are allowed to fly commercial passenger aircrafts. CFTI imparts flight training to the trainees whereby CPL holders are trained on specific aircraft simulators. Such aircraft -specific training is called 'type rating training' and is an extensive course of a minimum 37 days wherein the trainees are imparted specified skills and knowledge about specific aircraft. Cfti, the applicant, has been providing 'dry' training to the Commercial Pilot's Licence (CPL) holders from various airlines who have already been type rated for specific aircraft. The 'dry' training involves granting the right to use the Full Flight Simulators to airline companies for scheduled hours with their pilots training under the guidance of airline company's own instructors. Cfti has also been providing 'wet' training to pilots on A320 and B737 aircraft simulators wherein training is provided by Cfti's trainers. Cfti has obtained service tax registration under the category "Commercial Training and Coaching Service" in October, 2008 and it is stated by the applicant's representative that on such 'wet training' it has been paying service tax. The applicant has clarified that it is seeking a ruling with regard to service tax liability on full - fledged 37 day wet training conducted by it for 'Type Rating'.
(3.) CFTI has started providing type rating training commercially from April 28, 2009 for the first batch of pilots and the course was yet to be completed when the application for Advance Ruling was made before the Authority on 26th June, 2009. The Commercial Pilot's Licence holders intending to undergo aircraft -specific type rating training approach CFTI either directly on their own or through the airlines with whom they are employed (on stipend basis as trainee or otherwise). CFTI has been approved by the Directorate General of Civil Aviation (DGCA) on a provisional basis to conduct aircraft -specific type rating training courses for B737 & A320 aircraft subject to certain conditions. CFTI has claimed that once the trainee pilots have completed the type rating training with it they will be issued a Certificate of Course Completion by CFTI which must be produced under the terms of para 5 of Section J Schedule II of the Aircraft Rules, 1937.;


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