Cae Simulation Training Private Limited v. Counsel for

7. Reliance was placed on a decision rendered by Delhi High Court in case of Indian Institute of Aircraft Engineering vs. Union of India, 2013 (30) S.T.R. 689 (Delhi) and decision of Division Bench of this Court in case of Commissioner of Central Excise, Customs & Service Tax vs. Garg Aviations Ltd., 2014 (35) S.T.R. 441 (Allahabad).

8. Respondent no. 3 passed an order on 02.12.2022. Aggrieved by order passed by Advance Ruling Authority, petitioner filed an appeal before 3 WTAX No. 1248 of 2023 respondent no. 2 under Section 100 of CGST Act read with UPGST Act. By order impugned, the appeal has been dismissed. Hence, the present writ petition.

9. Sri Atul Gupta, counsel for petitioner has strongly relied upon the decision rendered by Delhi High Court in case of Indian Institute of Aircraft Engineering (supra) and judgment of Division Bench rendered in case of Garg Aviations Ltd. (supra). He has also relied upon decision of Central Excise and Service Tax Appellate Tribunal, South Bench, Chennai rendered in case of Orient Flight School vs. Commissioner of GST and Central Excise, Chennai, (2023) 13 Centax 307 and also upon decision of Apex Court rendered in case of Suchitra Components Ltd. vs. Commissioner of Central Excise, 2008 (11) S.T.R. 430 as well as decision of Kerala High Court rendered in case of Manappuram Finance Ltd. vs. Assistant Commissioner of C.T. & Ex., Thrissur, 2023 (69) G.S.T.L. 141.

10. According to petitioner counsel, the word "qualification" occurring at Serial No. 66(a) of notification no. 12, according to dictionary meaning, means "act of qualifying, or condition of being qualified". Further, according to him, qualification also denotes the act of modifying or changing the strength of some idea. The word 'qualification' could not be confined to the degree being awarded by an Institution after education is imparted.

11. Lastly, he has placed reliance upon clarifactory circular issued by Ministry of Finance, Government of India, Department of Revenue on

11.10.2024 which clarifies as to the applicability of GST on DGCA approved flight training courses conducted by flight training organisation. The relevant part of circular dated 11.10.2024 is extracted hereasunder:- "4. Applicability of GST on the Directorate General of Civil Aviation (DGCA) approved flying training courses conducted by Flying Training Organizations approved by the DGCA:

4.1 Representations have been received regarding the applicability of GST on the DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) which are approved by the Directorate General of Civil Aviation (DGCA). The same has been examined.

4.2 Under GST Law, vide Sl. No. 66 of the notification No. 4 WTAX No. 1248 of 2023 12/2017- Central Tax (Rate) dated 28.06.2017, services provided by educational institutions to its students, faculty and staff are exempt from levy of GST. In the above notification, "educational institution" has been defined to mean an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.

4.3 In exercise of the power vested by Section 5 of the Aircraft Act, 1934, the Central Government has made the Aircraft Rules, 1937, which, inter-alia, provide for 'approved training', i.e. training the curriculum of which has been approved by the DGCA, and 'approved training organization', i.e. a flying training organization which shall obtain the approval of DGCA before the students are enrolled to acquire flying experience. The said rules further state that flying experience required for the issue of private pilot and commercial pilot licenses shall be acquired at the Flying Training Organization (FTO) approved/recognized by the DGCA. The Civil Aviation Requirements (CAR) issued under the said rules also provide for a completion certificate to be issued by an approved FTO to each student who completes its approved course of training.

4.4 It is evident from the above that the DGCA not only approves FTOs but also flying training courses and mandates the requirement of course completion certificates to be issued to successful candidates in terms of the Aircraft Act, 1934 and the rules prescribed thereunder. Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and are hence, exempt."

12. Sri Gupta submitted that in view of Circular 4.4, it is evidently clear that approved flight training course which are conducted by institutions like petitioner are covered under Serial No. 66 of Notification No. 12/2017- Central Tax dated 28.06.2017 and are exempted from GST.

13. Sri Anoop Trivedi, learned Additional Advocate General and Sri Arvind Kumar Mishra, learned Standing Counsel representing the State have not 5 WTAX No. 1248 of 2023 disputed the circular issued by Ministry of Finance, Department of Revenue and submitted that the matter may be remitted back to respondent no. 3 i.e. Authority for Advance Ruling for considering the matter afresh in light of the circular so issued.

14. Sri Parv Agarwal, learned counsel for respondent no. 1 and 4 does not oppose the proposal made by State counsel and submitted that after clarification made by Finance Ministry, Department of Revenue on

11.10.2024, the matter needs to be adjudicated in the light of it.

15. I have heard respective counsel for the parties and perused the material on record.

16. The short controversy engaging the attention of the Court is as to whether petitioner which is an Approved Training Organisation of DGCA and is imparting training to commercial pilots for extension of Aircraft Training Ratings is entitled to the exemption as provided under Circular 66(a) of the notification dated 28.06.2017 being Notification No. 12/2017- Central Tax.

17. The Authority for Advance Ruling had denied the benefit on the ground that petitioner is not covered under definition of 'educational institution' as given in notification no. 12 of 2017 at Serial No. 66(a). After the issuance of clarification by Ministry of Finance, Department of Revenue on 11.10.2024, the approved flight training courses conducted by FTOs approved by DGCA, wherein DGCA mandates the requirement of a completion certificate are covered under Serial No. 66 of Notification No. 12 of 2017 and are exempted from applicability of GST. The issuance of circular clarifies the position of the Notification No. 12 of 2017 from the date of its issuance i.e. 28.06.2017.

18. Thus, it has become imperative on the part of respondent no. 3 to adjudicate the matter afresh in the light of circular dated 11.10.2024 issued by Ministry of Finance, Department of Revenue and decide the question posed by petitioner.

19. Considering the facts and circumstances of the case, the order dated

02.12.2022 passed by respondent no. 3 and order dated 31.05.2023 passed by respondent no. 2 are hereby set aside.

20. The matter is remitted back to respondent no. 3 i.e. Authority for 6 WTAX No. 1248 of 2023 Advance Ruling for Goods and Service Tax, U.P. for reconsidering the question posed by petitioner in its application dated 01.09.2022 in light of circular dated 11.10.2024, within a period of three months, from the date of production of certified copy of this order.

21. Writ petition stands partly allowed. October 9, 2025 V.S.Singh (Rohit Ranjan Agarwal,J.) VIDYA SAGAR SINGH High Court of Judicature at Allahabad

7. Reliance was placed on a decision rendered by Delhi High Court in case of Indian Institute of Aircraft Engineering vs. Union of India, 2013 (30) S.T.R. 689 (Delhi) and decision of Division Bench of this Court in case of Commissioner of Central Excise, Customs & Service Tax vs. Garg Aviations Ltd., 2014 (35) S.T.R. 441 (Allahabad).

8. Respondent no. 3 passed an order on 02.12.2022. Aggrieved by order passed by Advance Ruling Authority, petitioner filed an appeal before 3 WTAX No. 1248 of 2023 respondent no. 2 under Section 100 of CGST Act read with UPGST Act. By order impugned, the appeal has been dismissed. Hence, the present writ petition.

9. Sri Atul Gupta, counsel for petitioner has strongly relied upon the decision rendered by Delhi High Court in case of Indian Institute of Aircraft Engineering (supra) and judgment of Division Bench rendered in case of Garg Aviations Ltd. (supra). He has also relied upon decision of Central Excise and Service Tax Appellate Tribunal, South Bench, Chennai rendered in case of Orient Flight School vs. Commissioner of GST and Central Excise, Chennai, (2023) 13 Centax 307 and also upon decision of Apex Court rendered in case of Suchitra Components Ltd. vs. Commissioner of Central Excise, 2008 (11) S.T.R. 430 as well as decision of Kerala High Court rendered in case of Manappuram Finance Ltd. vs. Assistant Commissioner of C.T. & Ex., Thrissur, 2023 (69) G.S.T.L. 141.

10. According to petitioner counsel, the word "qualification" occurring at Serial No. 66(a) of notification no. 12, according to dictionary meaning, means "act of qualifying, or condition of being qualified". Further, according to him, qualification also denotes the act of modifying or changing the strength of some idea. The word 'qualification' could not be confined to the degree being awarded by an Institution after education is imparted.

11. Lastly, he has placed reliance upon clarifactory circular issued by Ministry of Finance, Government of India, Department of Revenue on

11.10.2024 which clarifies as to the applicability of GST on DGCA approved flight training courses conducted by flight training organisation. The relevant part of circular dated 11.10.2024 is extracted hereasunder:- "4. Applicability of GST on the Directorate General of Civil Aviation (DGCA) approved flying training courses conducted by Flying Training Organizations approved by the DGCA:

4.1 Representations have been received regarding the applicability of GST on the DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) which are approved by the Directorate General of Civil Aviation (DGCA). The same has been examined.

4.2 Under GST Law, vide Sl. No. 66 of the notification No. 4 WTAX No. 1248 of 2023 12/2017- Central Tax (Rate) dated 28.06.2017, services provided by educational institutions to its students, faculty and staff are exempt from levy of GST. In the above notification, "educational institution" has been defined to mean an institution providing services by way of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.

4.3 In exercise of the power vested by Section 5 of the Aircraft Act, 1934, the Central Government has made the Aircraft Rules, 1937, which, inter-alia, provide for 'approved training', i.e. training the curriculum of which has been approved by the DGCA, and 'approved training organization', i.e. a flying training organization which shall obtain the approval of DGCA before the students are enrolled to acquire flying experience. The said rules further state that flying experience required for the issue of private pilot and commercial pilot licenses shall be acquired at the Flying Training Organization (FTO) approved/recognized by the DGCA. The Civil Aviation Requirements (CAR) issued under the said rules also provide for a completion certificate to be issued by an approved FTO to each student who completes its approved course of training.

4.4 It is evident from the above that the DGCA not only approves FTOs but also flying training courses and mandates the requirement of course completion certificates to be issued to successful candidates in terms of the Aircraft Act, 1934 and the rules prescribed thereunder. Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and are hence, exempt."

12. Sri Gupta submitted that in view of Circular 4.4, it is evidently clear that approved flight training course which are conducted by institutions like petitioner are covered under Serial No. 66 of Notification No. 12/2017- Central Tax dated 28.06.2017 and are exempted from GST.

13. Sri Anoop Trivedi, learned Additional Advocate General and Sri Arvind Kumar Mishra, learned Standing Counsel representing the State have not 5 WTAX No. 1248 of 2023 disputed the circular issued by Ministry of Finance, Department of Revenue and submitted that the matter may be remitted back to respondent no. 3 i.e. Authority for Advance Ruling for considering the matter afresh in light of the circular so issued.

14. Sri Parv Agarwal, learned counsel for respondent no. 1 and 4 does not oppose the proposal made by State counsel and submitted that after clarification made by Finance Ministry, Department of Revenue on

11.10.2024, the matter needs to be adjudicated in the light of it.

15. I have heard respective counsel for the parties and perused the material on record.

16. The short controversy engaging the attention of the Court is as to whether petitioner which is an Approved Training Organisation of DGCA and is imparting training to commercial pilots for extension of Aircraft Training Ratings is entitled to the exemption as provided under Circular 66(a) of the notification dated 28.06.2017 being Notification No. 12/2017- Central Tax.

17. The Authority for Advance Ruling had denied the benefit on the ground that petitioner is not covered under definition of 'educational institution' as given in notification no. 12 of 2017 at Serial No. 66(a). After the issuance of clarification by Ministry of Finance, Department of Revenue on 11.10.2024, the approved flight training courses conducted by FTOs approved by DGCA, wherein DGCA mandates the requirement of a completion certificate are covered under Serial No. 66 of Notification No. 12 of 2017 and are exempted from applicability of GST. The issuance of circular clarifies the position of the Notification No. 12 of 2017 from the date of its issuance i.e. 28.06.2017.

18. Thus, it has become imperative on the part of respondent no. 3 to adjudicate the matter afresh in the light of circular dated 11.10.2024 issued by Ministry of Finance, Department of Revenue and decide the question posed by petitioner.

19. Considering the facts and circumstances of the case, the order dated

02.12.2022 passed by respondent no. 3 and order dated 31.05.2023 passed by respondent no. 2 are hereby set aside.

20. The matter is remitted back to respondent no. 3 i.e. Authority for 6 WTAX No. 1248 of 2023 Advance Ruling for Goods and Service Tax, U.P. for reconsidering the question posed by petitioner in its application dated 01.09.2022 in light of circular dated 11.10.2024, within a period of three months, from the date of production of certified copy of this order.

21. Writ petition stands partly allowed. October 9, 2025 V.S.Singh (Rohit Ranjan Agarwal,J.) VIDYA SAGAR SINGH High Court of Judicature at Allahabad