2014 (8) TMI 1182 - HC - Central Excise

Repair and maintenance service - Repair, maintenance or airworthiness of an aircraft - Liability of Service Tax - HELD THAT - Though by amendment of the recent years, the right to practice law on the basis of the said qualification has been made subject to clearing /passing a Bar Exam to be held by the Bar Council of India , the same does not make the qualification of law not recognized by law. The recognition accorded by the Act, Rules and CAR supra to the Course Completion Certificate issued by the Institutes as the petitioner cannot be withered away or ignored merely because the same does not automatically allow the holder of such qualification to certify the repair, maintenance or airworthiness of an aircraft and for which authorization a further examination to be conducted by the DGCA has to be passed/cleared. The Instruction aforesaid holding the petitioner to be assessable to Service Tax is contrary to Section 65(27)and the Notification dated 25th April, 2011. Appeal dismissed.

Summary

Issues:
- Disposal of multiple appeals with identical facts and questions
- Interpretation of the impugned order by the Tribunal
- Recognition of Course Completion Certificate and qualification by approved Institutes
- Legal significance of the Rules and CAR in aviation sector
- Differentiation between qualification and license to practice
- Assessment of Service Tax based on the Instruction

Disposal of Appeals:
The judgment pertains to the disposal of multiple appeals with similar facts and issues. The Tribunal based its decision on a request made by the parties to consider the judgment of the Delhi High Court in a specific case. Consequently, the Tribunal dismissed Revenue's appeals and allowed the appeals filed by the respondent-assessee in line with the Delhi High Court's decision.

Interpretation of Tribunal's Order:
The High Court examined the impugned order passed by the Tribunal and found that it was based on the request made by the parties. Considering this, the High Court concluded that there was no basis for interference in the appeal.

Recognition of Course Completion Certificate:
The judgment delves into the legal recognition of Course Completion Certificates and qualifications offered by approved Institutes in the aviation sector. It emphasizes that the Act, Rules, and CAR distinguish between approved and unapproved Institutes. The judgment highlights that certificates from approved Institutes hold legal value, even if it is solely for eligibility purposes.

Legal Significance of Rules and CAR:
The judgment underscores the legal importance of the Rules and CAR in the aviation domain. It cites legal definitions to establish that the recognition granted through these regulations constitutes a legal acknowledgment, which cannot be disregarded.

Differentiation between Qualification and License:
The judgment clarifies the distinction between a qualification and a license to practice. It argues that the recognition of a qualification by law remains intact, even if further examinations are required for practicing in a specific field. The example of the legal profession is used to illustrate this point.

Assessment of Service Tax:
The judgment addresses an Instruction that deemed the petitioner assessable to Service Tax, which the High Court found to be contrary to Section 65(27) and a specific Notification. Consequently, the Instruction and related show cause notices were quashed, and the writ petition was disposed of accordingly.

In conclusion, the High Court found no substantial question of law warranting interference in the appeal and dismissed it accordingly.