Service Tax Penalty justified for deliberate misclassification to evade Tax

Chimes Aviation P Ltd. Vs Commissioner, Service Tax (CESTAT Delhi) The appellant is in the business of imparting training and coaching to individuals in the field of flying aircrafts for obtaining commercial licenses and private licenses from the Director General of Civil Aviation. The appellant, after receiving the requisite permission, also started operating the aircraft on a need basis or charter service and obtained registration as a service provider of the taxable services “transportation of passengers by air” and “commercial training and coaching”. The issue involved in these app...