Service tax payable by non-scheduled operator on income received from giving the right to use the aircraft to its customers (Chartering of aircrafts), Circular is also Valid

Regard being had to the language employed and the language engrafted in the circular, High Court is of the considered view that the issue raised falls in the realm of interpretation of the terms, namely – charter agreement . Factual matrix in each case has to be examined. High Court cannot examine and decide the issue in a vacuum. In praesenti , High Court is inclined to think so because the circular uses the terms – where the crew is also provided by the owners of the aircraft as in a wet lease of aircraft effective control is not transferred. Adjudication should take place first and till the adjudication is made, no coercive steps shall be taken against the members of the petitioner-association. In case members of the petitioner-association are aggrieved by any kind of adjudication, they can challenge the same before the appropriate forum in accordance with law. The issue pertaining to the validity of the circular is kept open.

IN THE HIGH COURT OF DELHI

W.P.(C) 3292/2010

BUSINESS AVIATION ASSOCIATION FOR INDIA

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