CESTAT rejects service tax exemption demand on “Commercial Training and Coaching Centre” services [Read Order]

Customs Excise & Service Tax Appellate Tribunal( CESTAT ) rejected the service tax exemption demand on “Commercial Training and Coaching Centre services” and has held that service tax exemption claim on “aircraft services” is sustainable.

The Assessee, M/s Haryana Institute of Civil Aviation ( HICA ), the appellants in Appeal No. ST/55734/2014, are engaged in providing training for flying aircraft to the pilot trainees and also are providing Landing and Parking Services to the other aircrafts which land in the premises of the institute; on the allegation that the appellants were providing “Commercial Training and Coaching Centre Services” and “Airport Service”; have not registered themselves and have not discharged the applicable service tax.

The assessee contended that the demand on “Commercial Training and Coaching Centre Services” is not sustainable, only the demand on “Airport Service” remains. Assessee contended that the same would be covered under the small-scale exemption during the relevant period.

Revenue contended that the assessee is liable to pay service tax on “commercial training and coaching centre services ”. Revenue contended that these services do not fall under the exempted category of services.

The bench comprising S.S Garg( Member, Judicial ) and P. Anjali Kumar( Member, Technical ) held that the training imparted by the HICA is not eligible for service tax. Accordingly, the demands raised on “Commercial Training and Coaching Centre Services” rendered by the appellants are not sustainable. The demand on “Airport Services” is within the exemption limit.

Assessee was represented by Shri Gagan Kohli. Revenue was represented by Harish Kapoor.

To Read the full text of the Order CLICK HERE

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