State-owned natural gas utility GAIL is likely to appeal before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the Adjusted Gross Revenues (AGR) dues demanded by Department of Telecommunications, according to a report by ICICI Securities.

The Supreme Court in its February 14 ruling has asked GAIL India “to seek appropriate remedy before the appropriate forum”. This means the apex court is not asking GAIL to pay AGR dues like it has asked unified license telecom companies, the report said.

“Thus, the AGR issue is likely to remain an irritant until TDSAT or a higher court to which the matter may be taken rules on it. However, we expect the eventual ruling to favour GAIL establishing that it is not required to pay license fee on its non-telecom revenues,” it added.

In the provisional assessment orders, DoT has raised a demand of Rs 1.83-lakh crore from GAIL towards annual license fee, including interest and penalty on AGR. The telecom department is demanding license fee at 8 per cent of its total revenue and not just on its miniscule optic fibre revenue.

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