Abhinav Pratap Raju And 24 Others Vs Indira Gandhi Rashtriya Uran Akademi (Allahabad High Court)
Allahabad High Court has directed the Indira Gandhi Rashtriya Uran Akademi (IGRUA) to address the refund claims of service tax made by a group of aviation students, including the petitioners, who had enrolled at the academy after 2010. The petitioners had paid service tax as part of their course fees, which was later found to be wrongly levied. This decision follows a precedent where the Delhi High Court, in 2013, ruled that service tax on aircraft training institutes, including IGRUA, was contrary to the Finance Act, 1994, and a related notification. Consequently, the Custom Excise and Service Tax Appellate Tribunal (CESTAT) and the Supreme Court upheld this position.
The petitioners, who were students at the time, argued that since the service tax was not applicable, they were entitled to a refund. The academy had initially filed for a refund but contended that the service tax was paid out of its own pocket and not passed on to the students. However, the academy’s communication with the students indicated that the fee burden, including the service tax, was indeed passed on to the students. The court, recognizing these facts, has instructed the academy to process the refund claims expeditiously. The petitioners have been given the liberty to submit fresh refund applications, either physically or electronically, which the academy must address within two months, following the precedent set by the Delhi High Court.
