9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (8) TMI 439 - AAR - GSTTaxability - supply of flying training services provided by the Applicant to their trainees - Applicability of Circular No. 117/36/2019-GST dated-11-10-2019 - rate of GST applicable. Taxability - HELD THAT - Applicant being a Approved Flying Training with approved curriculum fulfils the additional conditions laid down under GST regime in Clause (ii) of the definition of Educational institute. The Course completion Certificate issued by the Applicant is also recognised by Rule 41A, 41B, Schedule II-Section A-General Sectio J-Section J-Commercial Pilot's Licence (Aeroplanes) -Sub-clause 1 (f) And Civil Aviation Requirement (CAR)-Section 7-Flight Crew Standards Training and Licensing, Series D Training Organisation, Part I-Issue -II-dated 30 January 2015. Clause 14.3 Completion Certificate. The applicant is education institute for the purpose entry no. 66 of Notification No 12/2017-Central Tax (Rate) dated 28-06-2017. Applicability of Circular No. 117/36/2019-GST dated-11-10-2019 - HELD THAT - From Circular it is clear that Maritime Training Institutes are approved and its Curriculum and training programme are approved by the Regulator Director General Shipping (DG Shipping) under provisions of Merchant Shipping Act, 1958, and Rules as aforesaid. Further Licensing examination is conducted by the Assessment Centres , which actually results in grant of License under the Merchant Shipping Act, 1958, which is mandatory under the Law. In case of applicant also, it is a Approved Flying Training Institute, its curriculum is approved by the Director General of Civil Aviation ( DGCA ), Training is Certificate is granted only after passing of examination as per guidelines issued by DGCA The examiners are also approved examiners only by DGCA. Further Licensing examination are conducted by the DGCA at Examination centers approved under rule 41A of the Aircraft Rules. Only after this Examination conducted by DGCA through Examination center, the Commercial Pilot License is granted, which is mandatory for aviation. There are no hesitation that the principles and reasons explained in the aforesaid Circular for Maritime Training Institutes are equally applicable to Flying Training Institutes approved by the DGCA, having approved curriculum. Supply of Flying Training Services to trainees for completion of approved course for Commercial Pilot License (Aeroplanes), is exempted If such a supply is taxable, what will be the rate of GST applicable? - HELD THAT - Not relevant question.
Issues Involved:
1. Taxability of flying training services under GST. 2. Applicable GST rate if services are taxable. Issue-wise Detailed Analysis: 1. Taxability of Flying Training Services under GST: Facts and Contentions: - The applicant, M/s. National Flying Training Institute Private Limited (NFTI), provides flying training services to trainees aspiring to obtain licenses and ratings from the Directorate General of Civil Aviation (DGCA). - The training services include theoretical knowledge training, ground theoretical training, synthetic flight training, and flying training in air. - The applicant contends that the completion of the flying training course is a qualification recognized by the Aircraft Laws and should be exempt from GST. Applicant's Interpretation of Law: - The term "recognized by law" is broad and includes qualifications approved by statutory bodies. - The completion of the training course is a mandatory requirement for obtaining a Commercial Pilot's License (CPL) and is thus recognized by the Aircraft Act and Rules. - The DGCA supervises and approves the training curriculum, making it an essential part of the qualification process. Supporting Case Laws: - The Delhi High Court in Indian Institute of Aircraft Engineering v. Union of India (2013) held that training provided by institutes approved by the DGCA is exempt from Service Tax as it is a qualification recognized by law. - The Bombay High Court in National Flying Training Institute Private Limited v. CBEC (2023) agreed with the Delhi High Court, stating that the training provided by NFTI is recognized by law and exempt from Service Tax. Jurisdictional Officer's Submission: - The officer argued that the issue is sub-judice as appeals are pending in the Supreme Court against similar High Court judgments. - The officer also contended that the GST Council should clarify the applicability of exemptions for flying training institutes. Observations and Findings: - The provisions of the GST Act and the Service Tax regime are similar, and the interpretation of "recognized by law" under Service Tax should apply to GST. - The Bombay High Court's judgment in the applicant's own case under Service Tax is binding and applicable to the GST regime. - The training provided by NFTI is part of an approved curriculum leading to a qualification recognized by law, fulfilling the conditions for exemption under GST. Decision: - The supply of flying training services provided by NFTI to their trainees for the completion of the approved course for Commercial Pilot License (Aeroplanes) is exempt from GST under entry at Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. 2. Applicable GST Rate if Services are Taxable: Decision: - As the supply of flying training services is exempt from GST, the question of the applicable GST rate does not arise.
|
