2018 (5) TMI 1892 - 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 involved:
- Interpretation of law regarding Course Completion Certificate
- Application of Delhi High Court judgment in a similar case
- Dismissal of Revenue's appeals and allowance of respondent-assessee's appeals based on Delhi High Court's decision
- Recognition of qualifications offered by approved institutes
- Disposal of appeals by the Tribunal based on parties' request
- No interference in the appeal based on Tribunal's order

Interpretation of law regarding Course Completion Certificate:
The High Court analyzed the significance of Course Completion Certificates offered by institutes approved by the Directorate General of Civil Aviation (DGCA). The court highlighted that the certificates from approved institutes hold legal value as they are recognized by the law, especially for eligibility in obtaining licenses for certifying aircraft repair and maintenance. The judgment emphasized the distinction between approved and unapproved institutes, stating that certificates from approved institutes confer certain rights recognized by the law.

Application of Delhi High Court judgment:
The Court referred to a judgment by the Delhi High Court in a similar case involving the Indian Institute of Aircraft Engineering. The Tribunal in the present case disposed of appeals based on the request made by the parties, aligning with the decision of the Delhi High Court. The High Court found no grounds for interference in the appeal, considering the basis on which the Tribunal had made its decision.

Dismissal of Revenue's appeals and allowance of respondent-assessee's appeals:
The Tribunal dismissed the Revenue's appeals and allowed the appeals filed by the respondent-assessee, following the decision of the Delhi High Court. The High Court concurred with this approach, noting that the Tribunal's decision was based on the parties' request and the alignment with the Delhi High Court's ruling.

Recognition of qualifications offered by approved institutes:
The High Court reiterated that the qualifications offered by approved institutes, as recognized by the law, hold value in terms of eligibility for certain licenses and approvals. The judgment emphasized that the recognition of such qualifications through rules and regulations signifies legal acknowledgment, distinguishing approved institutes from unapproved ones.

Disposal of appeals by the Tribunal based on parties' request:
The Tribunal disposed of the appeals in this case following the request made by the parties, which led to the dismissal of Revenue's appeals and the allowance of respondent-assessee's appeals. The High Court found no reason to interfere in the appeal, given the circumstances under which the Tribunal had made its decision.

No interference in the appeal based on Tribunal's order:
Ultimately, the High Court concluded that no substantial question of law arose in the appeal, and there was no basis for interference. The appeal was dismissed in line with the Tribunal's decision, with the High Court highlighting that the matter was subject to the final outcome of a pending Special Leave Petition (SLP) before the Apex Court.