- (1.) This appeal has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 against the order dated 7 October 2013 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi. The issue that arose before the Tribunal was whether service tax could be levied on the assessee. The Tribunal, in view of the decision of the Delhi High Court in Indian Institute of Aircraft Engg. v. Union of India, 2013 40 STT 77 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?
(2.) The assessee, namely M/s Garg Aviations Limited is a company registered under the Companies Act, 1956 and is running a Flying Training Institute and Aircraft Maintenance Engineering Institute at Kanpur. It is engaged in providing training and coaching to individuals in the field of flying of aircraft for obtaining Commercial Pilot License from the Director Civil Aviation (DGCA), New Delhi. It is also engaged in providing training for obtaining Basic Aircraft Maintenance Engineering Licence.
(3.) A similar issue arose before the Delhi High Court in Indian Institute of Aircraft Engg. . The Delhi High Court held as follows: 1. The petition impugns, (i) the Instruction No.137/132/2010-ST dated 11.05.2011 of the respondent No. 2 Central Board of Excise & Customs (CBEC) to the effect that Flying Training Institutes providing training for obtaining Commercial Pilot Licence (CPL) and Aircraft Engineering Institutes for obtaining Basic Aircraft Maintenance Engineering Licence (BAMEL) come in the category of coaching centres as laid down in Section 65(27) of the Finance Act, 1994 and therefore assessable to service tax; and, (ii) the show cause notice dated 30.03.2012 issued by the respondent No. 4 The Additional Commissioner of Service Tax to the petitioner.;