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2023 (9) TMI 17 - AT - Service TaxClassification of services - commercial training and coaching services - service of training on aircraft maintenance to candidates enrolled with the institute - vocational training institute - N/N. 24/04-ST dated 10.09.2004 - HELD THAT - During the impugned period the commercial training and coaching services was exempted from payment of service tax by way of Notification No.24/2004-ST dated 10.09.2004 being a vocational training institute. The said issue has been examined by the Hon ble Delhi High Court in the case of M/S INDIAN INSTITUTE OF AIRCRAFT ENGINEERING VERSUS UNION OF INDIA ORS 2013 (5) TMI 592 - DELHI HIGH COURT , wherein the Hon ble High Court has quashed the instruction No.137/132-2010-ST dated 11.05.2011 holding that merely because the certificate issued by the institute does not lead to an employment directly, but another examination is required to be cleared for getting employment, would not lead to the conclusion that the institute imparting such training is not vocational training institute. In this case, the appellant has been issuing certificates after completion of necessary training at their institute to candidates enrolled with them and the said certificates has been approved by DGCA which qualify the candidates to sit for an examination conducted by DGCA to make them eligible to take employment as aircraft maintenance engineers. The appellant s institute is a vocational training institute, therefore, the services rendered by the appellant are exempt from payment of service tax in terms of Notification No.24/2004-ST dated 10.09.2004. The appellant is not liable to pay service tax - the impugned order set aside - appeal allowed.
Issues involved: Appeal against demand of service tax under the category of 'commercial training and coaching services' exempted under Notification No.24/04-ST dated 10.09.2004 for a vocational training institute.
Summary: The appellant provided training on aircraft maintenance to candidates, enabling them to appear for a DGCA examination for a maintenance engineer license. The revenue claimed the service was taxable, initiating proceedings. Despite the appellant's absence, the appeal was considered. The department supported the impugned order. Records showed exemption from service tax for 'commercial training and coaching services' under Notification No.24/2004-ST. The issue was whether the appellant qualified as a Vocational Training Institute per the Notification. The Delhi High Court case of Indian Institute of Aircraft Engineering vs. Union of India addressed a similar issue, emphasizing that a training institute does not lose its vocational status if further examinations are required for employment. The appellant issued certificates approved by DGCA, enabling candidates to sit for the DGCA examination for employment as maintenance engineers. Following the High Court's reasoning, the Tribunal held the appellant's institute qualified as a vocational training institute, thus exempt from service tax under Notification No.24/2004-ST. Therefore, the Tribunal ruled in favor of the appellant, setting aside the demand for service tax and providing consequential relief if applicable.
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