ST - F.T.I. providing training for obtaining CPL and A.E.I. for obtaining B.A.M.E.L. - Not liable to pay ST - Board Instruction quashed: HC
IN Instruction No. 137/132/2010-ST dated 11.05.2011, CBEC clarified that Flying Training Institutes providing training for obtaining Commercial Pilot Licence (CPL) and on Aircraft Engineering Institutes for obtaining Basic Aircraft Maintenance Engineer Licence (BAMEL) would clearly come in the category of coaching centres as laid out in the Section 65(27) of the Finance Act ibid (either prior to or after Budget 2011) and therefore would be taxable.
This instruction and the consequent Show Cause Notice are challenged before the Delhi High Court by Indian Institute of Aircraft Engineering. The petitioner is an Aircraft Maintenance Engineering Training School approved by the DGCA for providing Aircraft Maintenance Engineering (AME) training and conducting examination as per the course approved by the DGCA under the Aircraft Act, 1934 (the Act) and the Aircraft Rules, 1937 (the Rules) and the Civil Aviation Requirements (CAR) issued by the DGCA under Rule 133B of the Rules.
The Delhi High Court yesterday quashed the Board Instruction and the Show Cause Notice.
While reporting the Board Instruction in DDT 1650 - 13.07.2011, we had commented,"One more Circular from the Board which will only help fill the coffers of advocates and tax consultants- they will only welcome more of such circulars from the Board"
We bring you this ‘yesterday's judgement' today.