2013 (9) TMI 667 - AT - Service Tax

Supply of Tangible Goods - Commercial Training or Coaching Services - Maintenance and Repair services - Stay - Held that - The particular issue of certificate issued by a flying club can be recognised or not was within the ambit of the DGCA as per the Indian Aircraft Acts and Rules made there unde - the issue needed to be examined in depth which can be done only at the time of final disposal of appeal - The certificate was recognised by the DGCA for allowing the candidate/ student to appear for the examination of Commercial Pilot License - schedule 2, Section-A, of the schedule annexed to Indian Aircraft Rules, which are prescribed under the provisions of Indian Aircraft Act - sub-rule 2 in the said schedule which talks about flying experience and more specifically to clause (a) - the evidence which was required for granting of Commercial Pilot License by DGCA, was a certificate to be given by an appropriate authority specified in sub-rule 4 of Rule 67A - the appellant was granted license by the DGCA under the specific Rule for training and issuing such certificate - the said licenses were being validated time to time and one of the most important clauses was that the flying experience certified by the appellant would be considered had been acquired by the pupil pilot for issue of Commercial Pilot License in accordance with Aircraft Acts and Rules made thereunder. Waiver of Pre-deposit - appellant had made out a case for the waiver of pre-deposit of the balance amounts involved in this case - stay granted.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of service tax liability under three categories: Supply of Tangible Goods, Commercial Training or Coaching Services, and Maintenance and Repair services.

Analysis:
The appellant filed a stay petition seeking the waiver of pre-deposit for the confirmed service tax liabilities under three categories. The counsel argued that the amounts already deposited for the liabilities related to Supply of Tangible Goods and Maintenance and Repair Services should suffice for hearing the appeal on those issues. Regarding the Commercial Training and Coaching Services, the appellant contended that the certificates issued for pilot training were recognized under the Indian Aircraft Rules, specifically referring to the DGCA's requirements for Commercial Pilot License. The appellant highlighted the importance of the certificates issued and cited previous tribunal decisions to support their claim.

The Additional Commissioner argued against considering the appellant's certificates as recognized under the law, emphasizing the distinction between the certificates issued by the appellant and the licenses granted by the DGCA for Commercial Pilots. The Commissioner referenced a decision by the Bombay Bench and a CBEC circular to support the position that institutions granting certificates enabling individuals to appear for DGCA examinations are subject to service tax. The Commissioner contended that the appellant's training only provided flying experience and did not confer recognized certification under the law.

Upon considering the submissions from both sides and examining the relevant provisions, the Tribunal found that the appellant, being an appropriate authority under the Indian Aircraft Rules, had the authority to certify flying experience as required for a Commercial Pilot License. The Tribunal noted that the issue of whether the certificates issued by the appellant were recognized fell within the DGCA's purview under the Indian Aircraft Acts and Rules. The Tribunal distinguished previous decisions and emphasized the need for a detailed examination of the issue at the final appeal stage. Ultimately, the Tribunal granted the waiver of pre-deposit for the balance amounts, deeming the amount already deposited by the appellant sufficient for the appeal proceedings.

In conclusion, the Tribunal allowed the appellant's application for the waiver of pre-deposit concerning the service tax liabilities, acknowledging the appellant's case and the statutory authority under the Indian Aircraft Rules for issuing certificates related to pilot training.