9911796707
TMI Blog2024 (8) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... lity 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtaining aircraft type ratings (hereinafter referred to as ATRs ) thereafter. 1.3 Under Section 5 (1)(g) and (o) of the Aircraft Act, 1934, the Central Government has been empowered to make Rules in respect of the licensing of persons engaged in the operation of aircrafts, and the manner and conditions of the issue or renewal of any such licenses. In pursuance of the provision of Section 5 of the Aircraft Act, the Aircraft Rules, 1937 have been notified. 1.4 Further, Section 5A of the Aircraft Act empowers the DGCA to issue directions in respect of the topics covered under Section 5 (1). It is understood that Section 5A read with Rule 133 A of the Aircraft Rules have empowered the DGCA to issue the Civil Aviation Requirements (hereinafter referred to as CARs ). 1.5 On the other hand, Rule 41B of the Aircraft Rules provides for the setting up of Flying Training Organisations (hereinafter referred to as FTOs' ), which provide training in respect of aircrafts below 5700 kgs all-up-weight (hereinafter referred to as AUW ), with the approval of the DGCA, and in accordance with a Training and Procedure Manual (hereinafter referred to as TPM ) and a Quality Assurance Manual approved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course completion certificates/graduation certificates issued by the Applicant have been submitted. 1.9 The Applicant was established in 2007 and started providing the above referred training services from September 2008. Since inception, the Applicant has been of the view that the services provided by it to its students/ trainees shall not be subject to Service Tax. However, based on repetitive notices for payment of service tax under the head Commercial training 2) STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW 2.1) A. recognized by the law 1) The meaning of the term recognised by law , which is not defined under the GST law, has to be examined. It has been observed in the case of Indian Institute of Aircraft Engineering v. Union of India, 2013 (30) S.T.R. 689 (Del.) that the expression 'recognized by law is a very wide one, as compared to the expression conferred by law , and even if a certificate/degree/diploma/qualification is not the product of a statute but has approval of some kind in 'law', the same would be exempt. 2) It has also been noted that the term recognise is defined in the Black's Law Dictionary (8th Edition), as the confirmation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also been provided in clause (a) of the said sub-section that the evidence of the flying experience would be the production of a duly certified log book. 6) In this context, reference is made to the CAR issued in terms of Rule 133A of the Aircraft Rules read with the CAR Section 7, Series D, Part I dated 30.01.2015 (hereinafter referred to as FTO CAR ), which refers to the setting up of and the functioning of all FTOs imparting flying training for obtaining pilot licenses and associated ratings. 7) The FTO CAR provides for the eligibility to become an FTO, the conditions that need to be fulfilled, the process of approval of an FTO by the DGCA, and the supervision of the activities of the FTO by the DGCA. 8) Clause 7 of the CAR provides for the certificate of approval to be issued to an FTO by the DGCA, and that where the DGCA has authorized an FTO to conduct the testing required for the issuance of a licence or rating, such testing shall be conducted by personnel authorized by the DGCA, i.e. personnel receiving a certificate of designation from the DGCA. 9) It has been further provided in Clause 8 that the FTO needs to prepare a TPM to be approved by the DGCA, which will include th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther, on reading of the Aircraft Rules in conjunction with the FTO CAR and the CPL(A) application form, it is clear that the documents issued by the FTO, such as the FTPR and the trainee log book, amongst others, are required for submission along with such application. 16) In light of the above submissions, firstly, it is submitted that the completion of the training programme with the Applicant in accordance with the Aircraft Act, the Aircraft Rules, the FTO CAR and the Applicant's TPM is in the nature of a qualification recognised by any law for the time being in force , since,- (i) the completion of such flying training in accordance with the syllabus prescribed by the DGCA is recognised under the powers granted by the Aircraft Act, the Aircraft Rules and the FTO CAR, i.e. they are recognised by the law, and (ii) the completion of the flying training and acquiring the requisite flying experience from the FTO are requirements for a person to make an application to obtain a CPL(A), which is required for such person to be employed as a pilot. 17) Secondly, the syllabus prescribed for obtaining a license/rating, under the CAR Section 7, Series B is prescribed by the DGCA for obt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n passing an examination in this regard, it cannot be said that such qualification is not one recognised by the law. 5) The following is the relevant extract of the reasoning provided by the High Court: 25. We are of the view that the Act, the Rules and the CAR, having provided for grant of approval to such institutes and having laid down conditions for grant of such approval and having further provided for relaxation of one year in the minimum practical training required for taking the DGCA examination, have recognized the Course Completion Certificate and the qualification offered by such Institutes. The certificate / training / qualification offered by Institutes which are without approval of DGCA would not confer the benefit of such relaxation. Thus, the certificate / training/qualification offered by approved Institutes, has by the Act, Rules and the CAR been conferred some value in the eyes of law, even if it be only for the purpose of eligibility for obtaining ultimate licence/approval for certifying repair/maintenance/airworthiness of aircrafts. The Act, Rules and CAR distinguish an approved Institute from an unapproved one and a successful candidate from an approved instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to be further noted that the Department withdrew the appeal filed before the Supreme Court against the Indian Institute of Aircraft Engineering, due to the low tax effect, as on 19.11.2020, and therefore the stay on the said decision of the Delhi High Court can be considered to have been effectively vacated. 9) This decision has been followed by various High Courts in the case of Commissioner of Customs Central Excise v. MP Flying Club Ltd., 2014 (8) TMI 1182-MADHYA PRADESH HIGH COURT , and in the case of Commissioner of Central Excise, Customs Service Tax v. Garg Aviations Ltd., 2014 (35) S.T.R. 441 (All.). 10) In the latter case, the appellant was providing both flying training and AME training, and the Allahabad High Court has followed the reasoning in Indian Institute of Aircraft Engineering (supra) and held that such training services would not be leviable to Service Tax. 11) In the latter case the appellant was providing both flying training and AME training, and the Allahabad High Court has followed the reasoning in Indian Institute of Aircraft Engineering (supra) and held that such training services would not be leviable to Service Tax. 12) Applying the ratio and reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the completion of the same under the MTIs are recognised by the law. By the same analogy, the said exemption should be applicable on the training programmes conducted by the FTOs, like the Applicant. Alternatively, the completion of the training course is education as a part of a curriculum for obtaining a qualification recognised by the law 4) Without prejudice to the above submissions, it is submitted that alternatively, the completion of the flying training course offered by the Applicant is in the nature of education as a part of a curriculum for obtaining a qualification recognized by the existing law, i.e. the CPL(A) issued by the DGCA. 5) In this regard, reference can be made to the ST Instruction, which clarified that the licenses issued by the DGCA are in the nature of qualifications recognised by the law. 6) Further reference can be made to the case of Academy of Maritime Education and Training Trust v. Commissioner of Service Tax, 2014 (36) S.T.R. 1216 (Mad.), wherein the Madras High Court has relied upon the decision of the CESTAT in Bombay Flying Club v. Commissioner of Service Tax, Mumbai, 2013 (29) S.T R. 256 (Tri. - Mumbai), where the Tribunal held that the lic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce required for applying for a CPL in terms of Section J of Schedule II to the Aircraft Rules, 1937 is acquired. The same is mandatory for the trainees to qualify for appearing for the examination conducted by the DGCA and apply for a license, enabling them to pursue their profession as a pilot. Further, clauses (c) and (e) of the sub-section 2 provide that such flying experience has to be acquired at an FTO approved/recognised by the DGCA and has to be completed in accordance with the syllabus prescribed/approved by the DGCA. Reason being that such a training 5 programme is a qualification in legal terms is because it confers skills relating to flying aircrafts on the prospective pilots. Hence, the main purpose of the course is nothing but to obtain the CPL which is duly recognised by the law. Hence, in view of the submissions made above, the Applicant indeed falls under the definition of educational institution. 2.5) Submission on applicability of Advance Ruling of other State Authorities in similar cases: The present facts of the case are distinct from the facts disputed in Re: M/s CAE Simulation Training Pvt. Ltd., 2023 (8) TMI 969-Appellate Authority for Advance Ruling, Uttar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ratio decidendi in both the judgments is that the training services provided for obtaining a CPL are indeed recognised by law and hence, the assessee is indeed an educational institution. Therefore, the UP AAAR and Karnataka AAR, being per incuriam to the High Court Judgments, cannot be made applicable in the present case. 6) In view of the submissions made above, the Applicant submits that the services provided by the applicant are covered under the Exemption Notification and are exempt from GST. The applicant is indeed an educational institution, and its services are falling under the Heading 9992, more specifically under SAC 999294. 3) SUBMISSION BY THE JURISDICTIONAL OFFICER. 1. Applicant's contention that the issue already stands settled in view of High Court Judgement in the case of Indian Institute of Aircraft Engineering vs Union of India is not acceptable as the department had preferred an appeal in the Apex Court against the said decision of the High Court of Delhi vide SLP(C) No. 6083/2014. It is further submitted that in a similar case on the same issue, Civil Appeal No.3898 of 2017 (Commissioner Customs and CE, Indore Vs M.P. Flying Club Ltd) filed by the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also. 4) HEARING Preliminary hearing in the matter was held on 09.05.2024 Mr. /Aditya Vikram Jain, C.A. appeared, and requested for admission of the application. Jurisdictional Officer Mr. Bhusari, Superintendent, Division-Bhandara, Comme-Nagpur also appeared. The application was admitted and called for final hearing on 05.06.2024. Mr. Aditya Vikram Jain, C.A., authorized Representative, appeared made oral and written submissions. Jurisdictional Officer Mr. Mukul patil appeared. We heard both the sides. 5) OBSERVATIONS AND FINDINGS: 5.1) Uncontroverted facts of the case and applicable provisions of the Aircraft Act, 1937 and Rules Civil Aviation Requirements issued under the Aircraft Act,1937 are stated as under- 1) M/s. National Flying Training Institute Private Limited, (hereinafter referred as Applicant ), is engaged in the business of providing various types of flying training services to the trainees aspiring to obtain licenses and ratings. Its flying training facility located in Gondia, Maharashtra. 2) Flying Training Services are covered under Head 9992-Education services, sub-heading 9992-94-Other education and training services not elsewhere covered, (ii) training for flyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide- Certificate of DGCA delegated Authority as CFI/ Dy CFI and designated examiner vide file No DGCA-.16021/16/202C dated 25-062021. Refer Para- 6- Flying tests of Schedule II- Aircraft Personnel. 9) Applicant issues certificate to students who have completed the training and cleared the examination conducted by approved examiner, which states that ---- has successfully completed COMMERCIAL PILOT LICENCSE-AEROPLANE with MULTIENGINE INSTRUMENT RATING (MEIR) course as prescribed by DGCA under the Aircraft Rules, 1937, on date ---- from National Flying Training Institute, Gondia . 10) Format of the Course Completion Certificate is issued as per - 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. Sub-clause-14. 3..1 An FTO shall issue a completion certificate to each student who completes its approved course of training. Sub-clause 14.3.2 The completion certificate must be issued to the student upon completion of the course of training and contain at least the following information 11) Course Completion Certificate issued by Applicant is not license granted to Pilo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raining or coaching centre occurring in this sub-clause and in clauses (26), (27) and (90a) shall include any centre or institute, by whatever name called, where training or coaching is imparted for consideration, whether or not such centre or institute is registered as a trust or a society or similar other organisation under any law for the time being in force and carrying on its activity with or without profit motive and the expression commercial training or coaching shall be construed accordingly. 4) Exemption Notification No. 33/2011-Service Tax dated 25th April, 2011-(wef 01-05-2011) G.S.R. (E)- In exercise of the power conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby exempt,- (i) any preschool coaching and training; (ii) any coaching or training leading to grant of a certificate or diploma or degree or any educational qualification which is recognised by any law for the time being in force; when provided by any commercial coaching or training centre from the whole of the service tax leviable thereon under section 66 of the Finance Act, 1994. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centres as laid out in the pre-amended section 65(27) of the Finance Act ibid (prior to Budget 2011) and therefore would be taxable. It is submitted by the applicant that based on these instructions, adjudication order was passed in its case under Service Tax and had challenged the same before Hon'ble Bombay High Court, Nagpur Bench, through Writ Petition No 5303/2014, which is decided on 31 October, 2023. 5.2.3) Provisions of Service Tax era - as explained by CBEC Instructions.- Observations judgment of the Hon'ble Bombay High Court, Nagpur Bench in Applicants own cases in National Flying Training Institute Private Limited V. CBEC, 2023 (12) TMI 439 (Bom.) are as under, The challenge raised in this writ petition is to the Instruction dated 11.05.2011 issued by the Director, Service Tax under the Ministry of Finance through its Department of Revenue holding that the Course Certificate being issued by Flying Training Institutes cannot be held as recognized in law for the purposes of exemption from paying service tax. A challenge is also raised to the show cause notice dated 18/21 10.2013 that has been issued by the Commissioner, Central Excise, Custom and Service Tax Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pursuant to the show cause notice dated 18/21.10.2013 in accordance with law . 5.2.4) Provisions of Exemption in GST Regime.- a. The applicant is claiming that it being Educational Institute for purposes of Entry at Sr. no 66 of the Notification 12/2017-Central tax (Rate)-dated 28th June 2017 are reproduced as under, Table Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (percent.) Condition (1) (2) (3) (4) (5) 66 Heading 9992 or Heading 9963] Services provided (a) by an educational institution to its students, faculty and staff; [.................. Nil Nil b. Definitions. - For the purposes of this notification, unless the context otherwise requires, (v) educational institution means an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course. 5.2.5) Submission of the Jurisdictional Officer- on applicability of Judgment of Hon'ble Bombay High Court.- i) The judgment of Bombay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cognised by any law are same. Only one extra condition of as a part of curriculum is incorporated in GST regime. In Service tax regime - words used are leading to grant of a certificate or diploma or degree or any educational qualification , whereas in GST Regime words used are for obtaining a qualification . Use of words leading to and for obtaining - clearly point that something further is / may be required for obtaining a qualification 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 Sub-clause-14. 3..1 An FTO shall issue a completion certificate to each student who completes its approved course of training. Sub-clause -14.3.2 The completion c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutes in pari materia'. As stated by Lord Mansfield 'where there are different statutes in pari materia though made at different times, or even expired and not referring to each other, they shall be taken and construed together, as one system and as explanatory of each other'. (Emphasis supplied) b. Decision on applicability of judgment of Hon'ble Bombay High court supra- We have gone through the facts stated in the judgment in applicants own case in service Tax era and facts in this advance ruling Application, and have come to the conclusion that the facts are same, mand provisions applicable being pari materia, the ratio decidendi of the Bombay High Court is applicable and binding on us till it is stayed or set side by Hon Supreme Court till date department has not filed Special Leave Petition. Please refer following judgments, on which the decision is based (a) Operation of any judgement or order of higher Authority or court is binding as per judgment of Hon'ble Supreme Court in case of Ghaziabad Development Authority vs Balbir Singh, in appeal (civil) No. 7173 of 2002 decided on 17 March, 2004, in last three lines of last para of the judgment has held as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Director General of Shipping is empowered to designate assessment centres. Further the provisions of sub-rules (6), (7) and (8) of the Rule 4 of the said Rules, empowers the Director General of Shipping, to approve (i) the training course, (ii) training, examination and assessment programme, and (iii) approved training institute etc. 6. From the above discussion it is seen that the Maritime Training Institutes and their training courses are approved by the Director General of Shipping which are duly recognised under the provisions of the Merchant Ship ping Act, 1958 read with the Merchant Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014. Therefore, the Maritime Institutes are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to meeting the conditions specified at SI. No. 66 of the notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 5.3.2) Part-B) Our view- From the wording of the Circular- It is clear that, it has laid down the conditions based on which institute can be said to be Education institute- an institution providing services by way of,- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er these rules; f) Rule 4 (8) Approved training institute means a training institute approved by the Director General of Shipping; g) Rule 4 (9) Assessment Centre means a centre designated by the Director General of Shipping responsible for assessment of candidates and maintaining records for the purposes of assessment; h) Rule 9. Training and assessment.- (1) The Director General of Shipping shall designate assessment centres which shall,- (a) assess and maintain records of candidates with regard to their sea-going service, ashore and on board training, courses attended, examinations and assessments completed and certificates held by the seafarers; (b) examine the documentary evidence that the candidate has fulfilled the eligibility criteria for joining an approved training and assessment programme; and 5.3.4) Similar provisions are incorporated in the Aircraft Act, 1937 Aircraft Rules, 1937 its schedules and Civil Aviation requirements issued under rule 133B of the Aircraft Rules. a) Section 76. Certificates of competency to be held by officers of ships.- Related Aircraft rules are, Rule 6. Licensing of personnel Every aircraft shall carry and be operated by the personnel prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s Licence (ATPL), and for issue of CPL and ATPL, such period shall be five years c) Section 79- Examination for, and grant of certificate Related Aircraft rule is- Rule 41A. Checks, tests and examinations.- (1) The Director-General may conduct examination specified in Schedule II, may fix examination centres within India, appoint invigilators and lay down the procedure for conducting the examinations d) Approved training course- (d-1) Aircraft rule- Rule 3-(1-H) approved training means a training the curriculum of which has been approved by the Director General. (d-2) Refer Civil Aviation Requirements- CAR-Section 7- Flight Crew Standards Training and Licensing,, Series D-Training Organisation, Part I-Issue-II-dated 30 January 2015-Clause 8. 8. Training and Procedures Manual. e) Approved training, examination and assessment programme- Related Aircraft rule is-(e-1) Rule 41B. Approved Training Organisation. (3) (a) The FTO shall possess the requisite infrastructure, adequate facilities, qualified and trained manpower including instructors as may be specified by the Director-General and the simulator training in such organisation shall be undertaken on simulator approved by the Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ....... SCHEDULE II- AIRCRAFT PERSONNEL (See rule 7 and Part V) SECTION A- GENERAL 2. Flying Experience - (a) The evidence normally required as proof of flying experience shall consist of the production of a personal log book certified by the appropriate authority specified in Sub-Rule (4) of Rule 67A, or of a certified extract therefrom in the form which may be prescribed by the Director-General. Such flying experience shall be to the satisfaction of the Director-General. (b) The flying experience required for the issue of Private Pilot's Licence and Commercial Pilot 's Licences shall be acquired under the supervision of a Flight Instructor and shall be on aircraft having valid Certificate of Airworthiness , maintained in accordance with Rules 57-60 except Rule 59A and entered in the Aircraft Rating of Pilot's licence currently held by him.[Provided that the flying experience on an aircraft having a valid special certificate of airworthiness issued by the Director-General, may also be counted if so provided in the relevant section of this Schedule and subject to conditions specified therein. (c) The flying experience required for issue of Private Pilot's and Commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the said institutes are educational institutions. It is observed that the sand institutes are empowered to impart training and certification of the said training in terms of Merchant Shipping Act, 1958 read with relevant Rules supra, whereas in the instant case the Aircraft Act and the Aircraft rules did not approve the appellant as an institute for conduct of examination that yields to or results into a qualification, but only to issue course completion certificate which is useful only as one of the enclosure to file the application for the Type Rating Examination conducted by the DGCA. The applicant's submission in para A.10 (b) confirms this stand. Submission-Para 3- The issue of applicability of GST exemption to the Directorate General of Shipping approved maritime courses conducted by the Maritime Training Institutes of India has been issued with reference to representations received by the GST Council. GST Council being the appropriate authority to decide the issue. It is therefore more appropriate if the applicants approach the GST Council for issuance of necessary clarification regarding applicability of exemption in respect of courses conducted in the case of flying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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. Hence we have 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. 5.4) Applicability of decisions of other Advance Ruling Authorities on similar/ same issue. The Authority of Advance Ruling, Karnataka in case of M/s. CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED in Advance Ruling No. KAR ADRG 13/2023, decided on Date: 20-03-2023 , and The Authority of Advance Ruling, Uttar Pradesh in case of M/s. CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED in Advance Ruling No. UP ADRG 14/2022, decided on Date: 02-12-2022 , have answered similar Question- 5.4.1) Applicant has submitted that-these AAR are not applicable to his case because facts of his case those in the AAR ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinct from the services provided by the Applicant in the present case. The training services provided by the Applicant is for the purpose of obtaining a qualification being the CPL. Whereas the assessee in the above rulings is providing training to already existing holders of the CPL. In any case, the matter has been settled by the Hon'ble Bombay High Court in the Applicant's own case and by the Hon'ble Delhi High Court. Similar submission is made regarding decision of the Uttar Pradesh Advance Ruling. 5.4.2) Submission of the Jurisdictional Officer It is submitted that similarity cannot be drawn between the courses provided by the Maritime Training Institute approved by the Directorate General of Shipping which are exempted vide Circular No. 117/36/2019-GST, dated 11-10-2019 issued by TRU and the course provided by the applicant. In this regard observations of the Appelate Authority for Advance Ruling under GST. Uttar Pradesh in appeal Order No. 07/AAAR/31/05/2023, dated 31-5-2023 may be referred to wherein it has been observed that the Maritime Training Institutes and their training courses are approved by the Director General of Shipping and are recognized under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1937, and for obtaining aircraft type ratings (hereinafter referred to as ATRs ) thereafter. 5.6 Under Section 5(2) of the Aircraft Act, 1934, the Central Government has been empowered to make Rules in respect of the licensing of persons engaged in the operation of aircrafts, and the manner and conditions of the issue or renewal of any such licenses. In pursuance of the provision of Section 5 of the Aircraft Act, the Aircraft Rules, 1937 have been notified. Findings, Discussion decision by the Authority- 28. In view of the foregoing it is very clear that the applicant imparts training to the trainees and thus provides ATR extension services. On completion of the said training the applicant issues course completion certificate, which is a pre-requisite document for preferring application before the DGCA, who conducts the examination through an approved examiner and on passing of the said exam the DGCA records the said ATR extension in the CPL of the pilots concerned. Thus the training of the applicant does not result into any qualification and also is not recognized by the law. 29. The applicant placed reliance on the service tax case of Indian Institute of Aircraft Engineering Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INDIA) PRIVATE LIMITED in Advance Ruling No. UP ADRG 14/2022, decided on Date: 02-12-2022 , has answered similar Question. Facts as observed by the Authority are- Para-16.1 We observe that the applicant has claimed that their organization has been approved by the DGCA as a Type Rating Training organization and they are conducting Type Rating Courses for pilots who are already holding CPL(A) as per DGCA approved curriculum. The training of pilots on simulators is just for obtaining the extension of aircraft type ratings on their existing licenses. The applicant does not provide any licence to the pilots as they are not the competent authority. Issuance and granting of commercial pilot licenses falls under the exclusive domain of DGCA. The applicant is only conducting training courses which helps the trainees to increase/accumulate ratings for flying specific aircrafts. Moreover, the trainees will have to undergo skill test when they complete simulator training at the institute. It is based on the results of these tests and examination and after fulfillment of other parameters that the DGCA would endorse the type ratings of aircraft in the licenses of trainee pilots. Therefore merely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of same Corporate Entity. CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED. 2) Training is provided to persons already holding Commercial Pilot Licenses. 3) Training is given for extension of Licenses. 4) In both these AAR, the training is given on Simulators. 5) Both the Authorities have answered that services provided by the Applicant are not exempted under SI. No. 66 (a) of the Notification No, 12/2017-Central Tax. (b) In the case of this Applicant-facts are different. 1) Training is provided to the persons who desire to obtain Commercial Pilot Licenses 2) The Flying Training Institute and its curriculum are approved by DGCA. 3) Training is given of Actual Flying of Aircrafts-as approved by the DGCA. Examiners approved by DGCA are authorised to conduct Examination which is necessary for grant of Course Completion Certificate for COMMERCIAL PILOT LICENCSE-AEROPLANE with MULTIENGINE INSTRUMENT RATING (MEIR) course. This is not a License to fly, but necessary qualifying Certificate for examination conducted by the DGCA, for grant of License. 5.4.6) Decision on applicability of aforesaid AAR orders- 1) As the facts of both these AAR are different than those in this case, 2) Secondly, bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
