Imparting specialized education does not constitute business under the relevant tax statutes, and related activities like food supply are not taxable.

ORDER :

T. Vinod Kumar, J.

Heard learned counsel for the petitioner and learned Special Standing Counsel for Commercial Taxes appearing on behalf of respondents, and perused the record.

2. Since, the petitioner in all these Writ Petitions is one and the same and the issue involved is similar, they are being disposed of by this common order.

3. The petitioner by the present Writ Petitions has assailed the action of the 1^st respondent authority in passing the Assessment Orders for the years 2004-05, 2005-06 and 2006-07 under the Andhra Pradesh General Sales Tax Act, 1957 (for short ‘APGST Act’) and the Andhra Pradesh VALUE ADDED TAX ACT , 2005 (for short ‘VAT Act’) respectively whereby the receipts towards supply of food to students and sale of application forms are subjected to tax (Sales Tax/VAT) by treating imparting of education and training by the petitioner in the field of Commercial Pilot licence, Air Craft Maintenance Engineering, Engine Overhaul and Avionics Shop as ‘business’ activity under the respective provisions of the Acts as being illegal, arbitrary and contrary to the provisions of the said Acts.

4. Briefly stated, the case of the petitioner is that it is a institution registered with the Director General of Civil Aviation (DGCA), Government of India to admit students for imparting of education and training to students for obtaining Commercial Pilot licence, Air Craft Maintenance Engineering, Engine Overhaul and Avionic shops; and that the petitioner was granted registration initially in the year 1997 which has been renewed from time to time all through this period.

5. It is the further case of the petitioner that in pursuance of the registration obtained by it from the DGCA, it had admitted students who are interested to undergo training for obtaining Commercial Pilot licence as well as Air Craft Maintenance Engineering etc; that in order to provide such training to the students, to take part in the examination conducted by the DGCA, the petitioner had maintained hostel facility wherein the students interested to pursue the aforesaid courses offered by the petitioner could stay during the period of their training/education before taking their examination for obtaining necessary certification.

6. It is contended by the petitioner that imparting of education cannot be equated to the petitioner carrying on ‘business’ as defined under the respective enactments and the petitioner cannot be treated as ‘dealer’ for it to be assessed to tax by the 1^st respondent.

7. It is the further contention of petitioner that since, the activity of imparting education would not come within the purview of ‘business’, the petitioner cannot be treated as a ‘dealer’, the receipt of amount by the petitioner towards supply of food to students and sale of application forms cannot be subjected to tax, as such activity is incidental to its main activity of imparting education, which itself is not liable to tax inasmuch as there is no element of ‘sale of goods’ involved.

8. It is also contended by the petitioner that under provisions of the VAT Act, the Government itself had granted exemption from levy of VAT, if the mess charges collected are less than Rs.1,000/- p.m. by inserting a proviso to Section 49 of the VAT Act by issuing Notification vide Act 33/2006.

9. On the basis of the above submissions, it is contended that the impugned Assessment Orders passed by the 1^st respondent authority clearly lack jurisdiction and authority, and as such, the petitioner has ass