TMI Blog2023 (8) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... the pilots concerned. Thus the training conducted by the appellant does not result into any qualification and it is not recognized by the law. The Appellant placed reliance on the service tax case of Indian Institute of Aircraft Engineering Vs. Union of India [ 2013 (5) TMI 592 - DELHI HIGH COURT ] and in the said case the petitioner was an Aircraft Maintenance Engineering Training School, approved by the DGCA, for providing Aircraft Maintenance Engineering (AME) training and also to conduct examination as per the course approved by the DGCA. These facts are different from the facts of the instant case in as much that the Appellant is not empowered to conduct the examination but impart training and issues completion certificate, which serves the purpose of a document required for filing the application with the DGCA so as to attend the examination. Thus the said case law is not applicable to the facts and circumstances of the case in hand. The Appellant also referred the Circular No. 117/36/2019-GST dated 11.10.2019 wherein a clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted by Maritime Training Institutes of India to the effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and the vice versa. 1.0 Brief facts of the case The instant appeal has been preferred against Advance Ruling No. UP ADRG-14/2022 dated 02.12.2022 passed in the case of Appellant i.e. M/s CAE Simulation Training Private Limited Sector-KP-III, 25/3, Gautam Buddha Nagar Greater Noida, Uttar Pradesh-201306. The Brief facts of the case are as under: 1.1 The Appellant is a group company of Inter Globe Enterprises Limited which is engaged in the business of facilitating the training of commercial pilots on the Aircraft Stimulators installed at its training facilities in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining the extension of Aircraft Type Ratings on their existing licenses. The Appellant is an Approved Training Organization by DGCA in Noida Uttar Pradesh wherein ATR training courses are provided to independent pilots who are already holding their commercial pilots license as per DGCA approved syllabus and manual. 1.2 The Appellant has to enter into the Flight Training Services Agreement with its trainees for professional purpose prescribing the fee to be paid by the trainees to the Appellant. After completion of traini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them is a part of curriculum approved by the DGCA and have not given any reasonable finding as to how the same were not tenable in a mechanical manner. The decision of Hon hie Delhi High Court in the case of Indian Institute of Aircraft Engineering Vs Union of India, 2013(30) S.T.R. 689(Del) is squarely applicable to the present case. 2.3 The order is gross violation of natural justice and non-sustainable in eye of law. Since the supply of education and training services to commercial pilots in accordance with training curriculum approved by DGCA for obtaining the extension of Aircraft Type Rating (ATR) are covered under the Sl.No. 66(a) of Notification dated 30.06.2017. Reference is made to CBIC Circular No. 85/04/2019-GST dated 01.01.2019 wherein it has been clarified that all the services provided by an Educational Institute to its students are considered to be exempt under the said entry and hence the impugned ruling is liable to set aside. 2.4 Training services being provided by the appellant by virtue of SAC 99294 under the Explanatory Notes to the Scheme of Classification of services qualifies as an educational service which is liable to GST@ 18% under Sl.No. 30 of the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to fill an office or to perform public duty or office' Thus in legal parlance qualification do not refer to the mere possession of degrees or diploma etc. but the progression of skills, accomplishments etc. which have been acquired through training or academic education, and which confer upon a person the ability to undertake a particular profession or pursuit. 2.8 DGCA is a statutory authority exercising powers conferred on it under the Aircraft Act and the rules made there under. Consequently, if a certificate is recognized by the DGCA for any specific purpose in pursuance of the provisions of the Aircraft Act/or the Air Craft Rules, the said certificate must satisfy the condition of having been recognized by law for the time being in force. 2.9 The meaning of the term 'recognised by law' is not defined under the GST law. However, it has been observed in the case of Indian Institute of Aircraft Engineering Vs Union of India 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' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m and argued that services provided by them are exempt under Entry No. 66(a) of Notification 12/2017-dated 28.06.2017. 4.1 The Appellant requested to submit some additional submission to defend the appeal which was accepted. The Appellant made additional submission via mail dated 19.04.2023. The Appellant reiterated the submission already made by them at the time of personal hearing. The Appellant has mainly argued that they are an approved Training Organization by DGCA and provide Aircraft Type Rating training course to the independent pilots already holding their Commercial Pilot License for obtaining the extension of ATR on their existing license. After completion of training they issue certification of course completion which is required under Rule 41 of Aircraft Rules, 1937 for extension of ATR on their existing license and hence training curriculum approved by DGCA for extension of ATR on existing commercial license would be covered under SI. No. 66(a) of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 which exempts the services provided by an educational institution to its students, faculty and staff from levy of CGST and UPGST. 5.0 Discussion and Findings W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r se does not allow or permit the holder to fly commercial passenger aircrafts, unless the holder undergoes an aircraft specific training which is called type rating training . Thus the holders of CPL are allowed to fly commercial passenger aircrafts only after undergoing the aircraft specific type rating training and after the license is endorsed to that effect. 5.4 The Appellant with regards to the qualification , quoting the definitions, of Advance Law Lexicon by P Ramanatha Aiyar i.e. the fitness or capacity of the party for a particular pursuit or profession, whether such capacity is natural or acquired through training and that of Black's Law Dictionary i.e. possession by an individual of the qualities, properties, or circumstances, natural or adventitious, which are inherently or legally necessary to render him eligible to fill an office or to perform public duty or office , submitted that in the legal parlance, qualifications do not refer to the mere possession of degrees, diplomas etc., but the possession of skills, accomplishments etc., which have been acquired through training or education and which confer upon a person the ability to undertake a particular professio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining such ATR extension, and the training programme conducted by the Appellant to certify that the requisite competency has been acquired is in pursuance of such curriculum prescribed by the DGCA and hence the completion of the training programme with the Appellant in accordance with the Aircraft Act, the Aircraft Rules, the ATO CAR and the Appellant's TPM is in the nature of a qualification recognized by any law for the time being in force . 6.0 In view of the foregoing the Appellant, concluding their interpretation of law, submitted that the training provided by the Appellant forms education as a part of the curriculum approved by the DGCA and the same is provided for the purpose of completing the ATR extension training at an ATO, as required by the Aircraft Rules, i.e. a qualification recognized under the existing law, which has to be further used for applying for the CPL(A) and such other licenses. 6.1 It is observed from the facts of the case that the Appellant undertakes the supply of the ATR extension training services to their trainees as per the agreement. The pilots holding the CPL(A) have to undergo the ATR extension training for the specific type of aircraft(s) s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersal acceptability but is merely a pre-requisite document for submission of the ATR extension application form, prescribed by DGCA, only to show that the required competency has been acquired by the said trainee. 6.5 The Appellant claimed that undergoing Type Rating Training is mandatory as per Rule 6A of the Aircraft Rules, 1937. However, it is observed that the said rule prohibits a person from flying an aircraft as pilot unless the said aircraft is included or entered in his licence. There is no specific mention of training in Rule 6A though the training and passing of the prescribed examination is a step in aid for such aircraft rating. Further, Para 5 of Section J, Schedule II of the Aircraft Rules, 1937 specifies the evidence required to be produced by an Applicant for extension of Aircraft Rating. The said provision requires the applicant to produce evidence of having passed written examination in subjects pertaining to aircraft and engines and of having gained experience in flying the aircraft or on approved flying simulators etc., 6.6 The candidates who receive training from the Appellant would be subjected to examination / test by the DGCA approved examiner. It is based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant without endorsement of the licence by a competent authority will not enable a pilot to fly an aircraft or seek employment. The training does not directly result into an employment or even enable the trainee to undertake self-employment. 7.1 In view of the foregoing it is clear that the Appellant imparts training to the trainees and thus provides ATR extension services. On completion of the said training the Appellant 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 conducted by the appellant does not result into any qualification and it is not recognized by the law. 7.2 The Appellant placed reliance on the service tax case of Indian Institute of Aircraft Engineering Vs. Union of India 2013 and in the said case the petitioner was an Aircraft Maintenance Engineering Training School, approved by the DGCA, for providing Aircraft Maintenance Engineering (AME) training and also to conduct examination as per the course approved by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
