Taxability of Royalty Unsettled Issue of Service Tax Regime
Kesoram Industries Ltd & Ors [ 2004 10 SCC 201] Five Judge Bench of Supreme Court held that Royalty on mineral rights is not a tax on land but a payment for the user of land Royalty is paid to the owner of land who may be a private person and may not necessarily be state A private person owing the land is entitled to charge royalty but