Interconnect service charges and royalty taxability were tested against prior precedent, with the challenged order upheld.

Interconnect service charges were examined on the question whether they constituted royalty liable to tax. The Court applied a prior Coordinate Bench ruling that had held such charges do not constitute royalty, and found no infirmity in the order under challenge. The issue was nevertheless answered against the assessee and in favour of the Revenue, as recorded in the document text.

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Issues: Whether interconnect service charges paid by the assessee constitute royalty and are chargeable to tax as such.

Analysis: The Court followed the decision of a Coordinate Bench which had already held that interconnect service charges do not constitute royalty. The earlier ruling was treated as applicable to the present appeal, and no infirmity was found in the order under challenge.

Conclusion: The issue was answered against the assessee and in favour of the Revenue.

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