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2022 (1) TMI 1016 - AT - Service TaxClassification of services - business of imparting training and coaching to individuals in the field of flying aircrafts for obtaining commercial licenses and private licenses from the Director General of Civil Aviation - transportation of passengers by air which became taxable w.e.f. 01.07.2010 or would be taxable under “supply of tangible goods” (STG) w.e.f 16.05.2008? - HELD THAT:- The provisions of section 65A would not come to the aid of the appellant for the simple reason that it is only when a taxable service is prima facie, found to be classifiable under two or more sub-clauses of section 65(105) that classification has to be effected in the manner provided. In the present case, as noticed above, there is no manner of doubt that the services provided by the appellant would fall only under section 65 (105) (zzzzj), which became taxable w.e.f. 16.05.2008. Likewise, section 66F(2), on which reliance has been placed by learned counsel for the appellant, would not come to the aid for the appellant as it is only where a service is capable of differential treatment for any purpose based on its description that the most specific description shall be preferred over a more general description. In any view of the matter, the most specific description of the service rendered by the appellant is STG. The services rendered by the appellant in charter hire of helicopters to various corporates for offshore operations is classifiable under “supply of tangible goods for use” service - the demand of service tax under the said category along with interest thereon is upheld. However, wherever the appellant has not collected service tax separately from the customers, the consideration received shall be treated as cum-tax and the service tax demand ought to be recomputed - the imposition of penalties on the appellant under Sections 76 & 77 of the Finance Act, 1994 for the default in payment of service tax and for non-compliance of statutory provisions relating to the service tax is upheld - the penalties imposed under Section 78 of the Finance Act, 1994 is set aside. Appeal allowed in part.
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